A bank's ability to earn money affects its long-term survivability. Earnings may be retained by the bank, increasing its capital buffer, or be used to deal with problematic loans, potentially making the bank more resilient in times of trouble. Losses, on the other hand, reduce a bank's ability to do those things.
On Bankrate's earnings test, The First National Bank of Hope scored 12 out of a possible 30, lower than the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. The First National Bank of Hope's most recent annualized quarterly return on equity was 5.53 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $557,000 on total equity of $10.0 million. The bank experienced an annualized return on average assets, or ROA, of 0.67 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.