A bank's ability to earn money has an effect on its long-term survivability. Earnings may be retained by the bank, increasing its capital buffer, or be used to address problematic loans, likely making the bank more resilient in tough times. However, banks that are losing money are less able to do those things.
The First National Bank of St. Ignace scored 0 out of a possible 30 on Bankrate's test of earnings, less than the national average of 15.12.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. The most recent annualized quarterly return on equity for The First National Bank of St. Ignace was -0.63 percent, below the national average of 8.10 percent.
The bank recorded net income of $-124,000 on total equity of $21.0 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of -0.05 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.