How profitable a bank is affects its long-term survivability. A bank can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, likely making the bank better prepared to withstand economic shocks. Losses, on the other hand, take away from a bank's ability to do those things.
On Bankrate's earnings test, Midwest Bank scored 30 out of a possible 30, better than the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. Midwest Bank's most recent annualized quarterly return on equity was 23.25 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $8.5 million on total equity of $38.2 million. The bank experienced an annualized return on average assets, or ROA, of 2.17 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.