A bank's profitability affects its safety and soundness. Earnings can be retained by the bank, expanding its capital cushion, or be used to address problematic loans, likely making the bank more resilient in tough times. Conversely, losses take away from a bank's ability to do those things.
Southwest National Bank exceeded the national average on Bankrate's earnings test, achieving a score of 22 out of a possible 30.
One widely used measure of a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. Southwest National Bank's most recent annualized quarterly return on equity was 13.27 percent, above the national average of 8.10 percent.
The bank reported net income of $5.6 million on total equity of $43.0 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.29 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.