How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, increasing its capital buffer, or use them to deal with problematic loans, likely making the bank more resilient in times of trouble. However, banks that are losing money are less able to do those things.
The First National Bank of Fairfax received below-average marks on Bankrate's earnings test, achieving a score of 8 out of a possible 30.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. The First National Bank of Fairfax's most recent annualized quarterly return on equity was 3.26 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $363,000 on total equity of $11.1 million. The bank reported an annualized return on average assets, or ROA, of 1.19 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.