A bank's ability to earn money affects its safety and soundness. A bank can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, likely making the bank better prepared to withstand financial trouble. However, banks that are losing money have less ability to do those things.
The First National Bank of Jackson scored 0 out of a possible 30 on Bankrate's test of earnings, coming in below the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. The most recent annualized quarterly return on equity for The First National Bank of Jackson was -0.88 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $-130,000 on total equity of $14.3 million. The bank experienced an annualized return on average assets, or ROA, of -0.12 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.