How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, expanding its capital cushion, or use them to deal with problematic loans, potentially making the bank better able to withstand financial trouble. Conversely, losses diminish a bank's ability to do those things.
Byline Bank scored 12 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 15.12.
One widely used way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. Byline Bank's most recent annualized quarterly return on equity was 5.78 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $25.1 million on total equity of $445.8 million. The bank had an annualized return on average assets, or ROA, of 0.76 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.