A bank's ability to earn money affects its safety and soundness. A bank can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, likely making the bank more resilient in times of trouble. Losses, on the other hand, take away from a bank's ability to do those things.
Marquette Bank scored 10 out of a possible 30 on Bankrate's test of earnings, coming in below the national average of 16.52.
Return on equity, calculated by dividing net income (essentially, profit) by the total amount of equity, is one widely used measure of a bank's earnings. Marquette Bank's most recent annualized quarterly return on equity was 4.82 percent, below the national average of 9.28 percent.
The bank reported net income of $4.1 million on total equity of $170.1 million for the twelve months ended June 30, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.52 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.