How profitable a bank is has an effect on its long-term survivability. Earnings may be retained by the bank, boosting its capital cushion, or be used to deal with problematic loans, likely making the bank better able to withstand financial trouble. Banks that are losing money, however, have less ability to do those things.
On Bankrate's earnings test, First Midwest Bank scored 14 out of a possible 30, below the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. First Midwest Bank's most recent annualized quarterly return on equity was 7.03 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $122.9 million on total equity of $1.89 billion. The bank experienced an annualized return on average assets, or ROA, of 0.92 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.