A bank's ability to earn money affects its safety and soundness. A bank can retain its earnings, giving a boost to its capital buffer, or use them 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.
Bank of Mingo fell short of the national average on Bankrate's earnings test, achieving a score of 2 out of a possible 30.
One important way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. Bank of Mingo's most recent annualized quarterly return on equity was 0.35 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $18,000 on total equity of $7.3 million. The bank reported an annualized return on average assets, or ROA, of 0.02 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.