How profitable a bank is has an effect on its long-term survivability. Earnings can be retained by the bank, giving a boost to its capital buffer, or be used to deal with problematic loans, potentially making the bank better able to withstand financial shocks. Losses, on the other hand, lessen a bank's ability to do those things.
On Bankrate's earnings test, The First National Bank of Woodsboro scored 0 out of a possible 30, less than the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. The most recent annualized quarterly return on equity for The First National Bank of Woodsboro was -0.82 percent, below the national average of 8.10 percent.
The bank earned net income of $-44,000 on total equity of $5.2 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of -0.07 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.