How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, potentially making the bank better able to withstand economic trouble. Losses, on the other hand, take away from a bank's ability to do those things.
On Bankrate's earnings test, The First National Bank of Proctor scored 4 out of a possible 30, coming in below the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity, is one widely used measure of a bank's earnings. The First National Bank of Proctor's most recent annualized quarterly return on equity was 2.00 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $48,000 on total equity of $2.4 million. The bank reported an annualized return on average assets, or ROA, of 0.20 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.