A bank's ability to earn money affects its safety and soundness. Earnings can be retained by the bank, giving a boost to its capital cushion, or be used to address problematic loans, potentially making the bank better prepared to withstand economic shocks. Conversely, losses lessen a bank's ability to do those things.
On Bankrate's earnings test, The First National Bank of Trinity scored 20 out of a possible 30, beating out the national average of 15.12.
One widely used way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. The First National Bank of Trinity's most recent annualized quarterly return on equity was 10.58 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $540,000 on total equity of $5.2 million. The bank experienced an annualized return on average assets, or ROA, of 0.93 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.