How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, likely making the bank more resilient in times of trouble. Conversely, losses reduce a bank's ability to do those things.
On Bankrate's earnings test, The First National Bank of Rembrandt scored 6 out of a possible 30, failing to reach the national average of 15.12.
One important measure of a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. The First National Bank of Rembrandt's most recent annualized quarterly return on equity was 2.43 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $260,000 on total equity of $10.7 million. The bank had an annualized return on average assets, or ROA, of 0.47 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.