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 buffer, or use them to address problematic loans, likely making the bank more resilient in tough times. Losses, on the other hand, reduce a bank's ability to do those things.
First Midwest Bank of Poplar Bluff scored 24 out of a possible 30 on Bankrate's earnings test, exceeding 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. First Midwest Bank of Poplar Bluff's most recent annualized quarterly return on equity was 15.29 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $5.6 million on total equity of $38.4 million. The bank experienced an annualized return on average assets, or ROA, of 1.42 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.