How profitable a bank is affects its long-term survivability. A bank can retain its earnings, boosting its capital cushion, or use them to address problematic loans, potentially making the bank more resilient in tough times. Losses, on the other hand, reduce a bank's ability to do those things.
The First Bank of Okarche beat the national average on Bankrate's earnings test, achieving a score of 26 out of a possible 30.
Return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity, is one important way to measure a bank's earnings. The First Bank of Okarche's most recent annualized quarterly return on equity was 17.10 percent, above the national average of 8.10 percent.
The bank reported net income of $1.8 million on total equity of $10.7 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 1.97 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.