A bank's ability to earn money has an effect on its safety and soundness. A bank can retain its earnings, increasing its capital buffer, or use them to address problematic loans, potentially making the bank better prepared to withstand economic shocks. Banks that are losing money, however, are less able to do those things.
Northwestern Bank, National Association received below-average marks on Bankrate's test of earnings, achieving a score of 10 out of a possible 30.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. Northwestern Bank, National Association's most recent annualized quarterly return on equity was 5.01 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $744,000 on total equity of $14.9 million. The bank had an annualized return on average assets, or ROA, of 0.55 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.