How profitable a bank is affects its safety and soundness. Earnings may be retained by the bank, giving a boost to its capital cushion, or be used to address problematic loans, potentially making the bank better able to withstand financial trouble. Losses, on the other hand, diminish a bank's ability to do those things.
On Bankrate's earnings test, The First National Bank & Trust Company of Rochelle scored 6 out of a possible 30, failing to reach the national average of 16.52.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one important way to measure a bank's earnings. The most recent annualized quarterly return on equity for The First National Bank & Trust Company of Rochelle was 2.21 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank reported net income of $298,000 on total equity of $26.9 million. The bank reported an annualized return on average assets, or ROA, of 0.21 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.