How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, increasing its capital cushion, or use them to address problematic loans, likely making the bank better prepared to withstand economic trouble. Losses, on the other hand, reduce a bank's ability to do those things.
MidSouth Bank, National Association scored 0 out of a possible 30 on Bankrate's earnings test, falling short of the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by the total amount of equity, is one important way to measure a bank's earnings. The most recent annualized quarterly return on equity for MidSouth Bank, National Association was -4.82 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $-10.8 million on total equity of $225.0 million. The bank reported an annualized return on average assets, or ROA, of -0.56 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.