A bank's ability to earn money has an effect on its long-term survivability. A bank can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, potentially making the bank better prepared to withstand economic shocks. Obviously, banks that are losing money are less able to do those things.
First Western Bank & Trust scored 18 out of a possible 30 on Bankrate's test of earnings, beating the national average of 15.12.
One key way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. The most recent annualized quarterly return on equity for First Western Bank & Trust was 8.80 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $9.7 million on total equity of $114.3 million. The bank reported an annualized return on average assets, or ROA, of 0.91 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.