How profitable a bank is affects its safety and soundness. Earnings can be retained by the bank, increasing its capital cushion, or be used to address problematic loans, potentially making the bank more resilient in tough times. Conversely, losses lessen a bank's ability to do those things.
The First National Bank of Quitaque received below-average marks on Bankrate's test of earnings, achieving a score of 12 out of a possible 30.
One key way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. The most recent annualized quarterly return on equity for The First National Bank of Quitaque was 5.50 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $452,000 on total equity of $8.3 million. The bank had an annualized return on average assets, or ROA, of 0.86 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.