How profitable a bank is affects its long-term survivability. Earnings may be retained by the bank, increasing its capital buffer, or be used to deal with problematic loans, potentially making the bank better prepared to withstand economic trouble. Obviously, banks that are losing money have less ability to do those things.
On Bankrate's earnings test, Municipal Trust and Savings Bank scored 22 out of a possible 30, better than 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 measure of a bank's earnings. The most recent annualized quarterly return on equity for Municipal Trust and Savings Bank was 12.08 percent, above the national average of 8.10 percent.
The bank earned net income of $6.5 million on total equity of $53.8 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 2.15 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.