A bank's earnings performance has an effect on its long-term survivability. Earnings can be retained by the bank, boosting its capital buffer, or be used to address problematic loans, potentially making the bank more resilient in times of trouble. Banks that are losing money, however, are less able to do those things.
On Bankrate's earnings test, The First Bank and Trust Company of Murphysboro scored 6 out of a possible 30, less than the national average of 15.12.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. The First Bank and Trust Company of Murphysboro's most recent annualized quarterly return on equity was 2.94 percent, below the national average of 8.10 percent.
The bank reported net income of $190,000 on total equity of $6.4 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.25 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.