How profitable a bank is affects its safety and soundness. Earnings can be retained by the bank, giving a boost to its capital buffer, or be used to address problematic loans, likely making the bank more resilient in tough times. Conversely, losses diminish a bank's ability to do those things.
On Bankrate's earnings test, Macatawa Bank scored 18 out of a possible 30, above the national average of 16.52.
Return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity, is one widely used measure of a bank's earnings. Macatawa Bank's most recent annualized quarterly return on equity was 9.96 percent, above the national average of 9.28 percent.
The bank reported net income of $10.0 million on total equity of $204.2 million for the twelve months ended June 30, 2017. The bank experienced an annualized return on average assets, or ROA, of 1.14 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and equal to the average for U.S. banks of 1.14 percent.