A bank's earnings performance affects its safety and soundness. A bank can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, potentially making the bank more resilient in times of trouble. Obviously, banks that are losing money are less able to do those things.
The First Bank of Celeste scored 18 out of a possible 30 on Bankrate's test of earnings, beating the national average of 15.12.
One important way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. The First Bank of Celeste's most recent annualized quarterly return on equity was 9.77 percent, above the national average of 8.10 percent.
The bank earned net income of $379,000 on total equity of $3.9 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.83 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.