A bank's profitability has an effect on its safety and soundness. Earnings may be retained by the bank, boosting its capital buffer, or be used to address problematic loans, potentially making the bank better prepared to withstand financial trouble. Obviously, banks that are losing money are less able to do those things.
Northbrook Bank and Trust Company outperformed the average on Bankrate's earnings test, achieving a score of 24 out of a possible 30.
One important measure of a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. The most recent annualized quarterly return on equity for Northbrook Bank and Trust Company was 15.44 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank recorded net income of $14.5 million on total equity of $198.3 million. The bank reported an annualized return on average assets, or ROA, of 1.40 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.