A bank's profitability has an effect on its long-term survivability. A bank can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, potentially making the bank more resilient in tough times. Obviously, banks that are losing money have less ability to do those things.
Northwestern Bank scored 20 out of a possible 30 on Bankrate's test of earnings, better than the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by the total amount of equity. Northwestern Bank's most recent annualized quarterly return on equity was 10.45 percent, above the national average of 8.10 percent.
The bank recorded net income of $3.1 million on total equity of $29.2 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.45 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.