A bank's earnings performance affects its safety and soundness. Earnings can be retained by the bank, giving a boost to its capital cushion, or be used to address problematic loans, potentially making the bank better prepared to withstand financial shocks. Banks that are losing money, however, are less able to do those things.
MWABank scored 0 out of a possible 30 on Bankrate's earnings test, lower than the national average of 15.12.
Return on equity, calculated by dividing net income (essentially, profit) by the total amount of equity, is one widely used measure of a bank's earnings. MWABank's most recent annualized quarterly return on equity was -19.65 percent, below the national average of 8.10 percent.
The bank recorded net income of $-5.8 million on total equity of $24.9 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of -2.01 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.