A bank's earnings performance affects its safety and soundness. Earnings can be retained by the bank, boosting its capital cushion, or be used to deal with problematic loans, potentially making the bank better able to withstand financial trouble. Conversely, losses reduce a bank's ability to do those things.
On Bankrate's test of earnings, First Western Bank scored 14 out of a possible 30, below the national average of 15.12.
One key way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. First Western Bank's most recent annualized quarterly return on equity was 6.59 percent, below the national average of 8.10 percent.
The bank earned net income of $2.0 million on total equity of $31.1 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.54 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.