How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, potentially making the bank better able to withstand economic shocks. Banks that are losing money, however, have less ability to do those things.
On Bankrate's test of earnings, Bank of Morton scored 30 out of a possible 30, above the national average of 15.12.
One widely used 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 Bank of Morton was 21.64 percent, above the national average of 8.10 percent.
The bank reported net income of $2.0 million on total equity of $9.7 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 3.06 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.