A bank's earnings performance has an effect on its long-term survivability. A bank can retain its earnings, expanding its capital cushion, or use them to deal with problematic loans, potentially making the bank better prepared to withstand financial shocks. Losses, on the other hand, lessen a bank's ability to do those things.
The First National Bank of Absecon scored 8 out of a possible 30 on Bankrate's test of earnings, below the national average of 15.12.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by the total amount of equity. The First National Bank of Absecon's most recent annualized quarterly return on equity was 3.73 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $575,000 on total equity of $15.5 million. The bank experienced an annualized return on average assets, or ROA, of 0.37 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.