How profitable a bank is affects its long-term survivability. Earnings may be retained by the bank, boosting its capital cushion, or be used to deal with problematic loans, potentially making the bank more resilient in times of trouble. Losses, on the other hand, reduce a bank's ability to do those things.
Bank of Winona did above-average on Bankrate's earnings test, achieving a score of 16 out of a possible 30.
One key way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. Bank of Winona's most recent annualized quarterly return on equity was 7.95 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $982,000 on total equity of $12.5 million. The bank experienced an annualized return on average assets, or ROA, of 0.85 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.