How profitable a bank is has an effect on its long-term survivability. Earnings may be retained by the bank, giving a boost to its capital cushion, or be used to deal with problematic loans, likely making the bank more resilient in times of trouble. Losses, on the other hand, take away from a bank's ability to do those things.
On Bankrate's test of earnings, The First National Bank of Tom Bean scored 0 out of a possible 30, falling short of the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by the total amount of equity, is one key measure of a bank's earnings. The most recent annualized quarterly return on equity for The First National Bank of Tom Bean was -5.34 percent, below the national average of 8.10 percent.
The bank earned net income of $-405,000 on total equity of $7.9 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of -0.44 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.