A bank's ability to earn money affects its long-term survivability. Earnings can be retained by the bank, boosting its capital buffer, or be used to address problematic loans, likely making the bank better prepared to withstand financial trouble. Losses, on the other hand, take away from a bank's ability to do those things.
On Bankrate's test of earnings, The First National Bank in Sioux Falls scored 10 out of a possible 30, lower than the national average of 15.12.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one important way to measure a bank's earnings. The most recent annualized quarterly return on equity for The First National Bank in Sioux Falls was 4.60 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $6.8 million on total equity of $148.7 million. The bank reported an annualized return on average assets, or ROA, of 0.60 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.