How profitable a bank is has an effect on its safety and soundness. Earnings can be retained by the bank, expanding its capital buffer, or be used to address problematic loans, likely making the bank more resilient in times of trouble. Conversely, losses lessen a bank's ability to do those things.
Midwest Bank beat the national average on Bankrate's earnings test, achieving a score of 30 out of a possible 30.
One widely used way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. Midwest Bank's most recent annualized quarterly return on equity was 22.16 percent, above the national average of 9.28 percent.
The bank earned net income of $4.0 million on total equity of $36.4 million for the twelve months ended June 30, 2017. The bank had an annualized return on average assets, or ROA, of 2.06 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.