A bank's profitability has an effect on its safety and soundness. Earnings may be retained by the bank, giving a boost to its capital cushion, or be used to deal with problematic loans, likely making the bank better able to withstand financial shocks. Conversely, losses lessen a bank's ability to do those things.
The First National Bank and Trust Company of Broken Arrow scored 16 out of a possible 30 on Bankrate's earnings test, above the national average of 15.12.
One important measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. The most recent annualized quarterly return on equity for The First National Bank and Trust Company of Broken Arrow was 7.75 percent, below the national average of 8.10 percent.
The bank recorded net income of $1.4 million on total equity of $18.8 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.77 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.