A bank's earnings performance affects its safety and soundness. Earnings can be retained by the bank, boosting its capital cushion, or be used to deal with problematic loans, potentially making the bank better able to withstand economic trouble. Conversely, losses take away from a bank's ability to do those things.
The First National Bank of Durango received above-average marks on Bankrate's earnings test, achieving a score of 20 out of a possible 30.
One important way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. The First National Bank of Durango's most recent annualized quarterly return on equity was 11.21 percent, above the national average of 8.10 percent.
The bank earned net income of $4.6 million on total equity of $40.7 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.94 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.