How profitable a bank is affects its safety and soundness. A bank can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, potentially making the bank better prepared to withstand financial trouble. Banks that are losing money, however, are less able to do those things.
On Bankrate's test of earnings, MCS Bank scored 8 out of a possible 30, below the national average of 15.12.
One widely used way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. MCS Bank's most recent annualized quarterly return on equity was 3.45 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $634,000 on total equity of $18.7 million. The bank experienced an annualized return on average assets, or ROA, of 0.45 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.