A bank's profitability has an effect on its safety and soundness. Earnings may be retained by the bank, expanding its capital buffer, or be used to address problematic loans, likely making the bank better prepared to withstand economic trouble. Obviously, banks that are losing money have less ability to do those things.
BMO Harris Central National Association fell short of the national average on Bankrate's earnings test, achieving a score of 4 out of a possible 30.
One widely used measure of a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. BMO Harris Central National Association's most recent annualized quarterly return on equity was 1.16 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $79,000 on total equity of $6.8 million. The bank experienced an annualized return on average assets, or ROA, of 1.01 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.