A bank's ability to earn money has an effect on its long-term survivability. Earnings can be retained by the bank, giving a boost to its capital cushion, or be used to deal with problematic loans, likely making the bank more resilient in tough times. However, banks that are losing money are less able to do those things.
First Midwest Bank of the Ozarks did above-average on Bankrate's test of earnings, achieving a score of 16 out of a possible 30.
One important way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. First Midwest Bank of the Ozarks's most recent annualized quarterly return on equity was 7.21 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $854,000 on total equity of $12.1 million. The bank experienced an annualized return on average assets, or ROA, of 0.71 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.