How profitable a bank is affects its long-term survivability. A bank can retain its earnings, expanding its capital cushion, or use them to address problematic loans, likely making the bank more resilient in tough times. Losses, on the other hand, reduce a bank's ability to do those things.
On Bankrate's earnings test, 1st Equity Bank Northwest scored 26 out of a possible 30, exceeding the national average of 16.52.
One key measure of a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by the total amount of equity. The most recent annualized quarterly return on equity for 1st Equity Bank Northwest was 16.62 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank recorded net income of $713,000 on total equity of $8.8 million. The bank reported an annualized return on average assets, or ROA, of 3.80 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.