How profitable a bank is affects its safety and soundness. A bank can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, potentially making the bank more resilient in tough times. However, banks that are losing money are less able to do those things.
First National Bank Minnesota fell behind the national average on Bankrate's test of earnings, achieving a score of 8 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 total equity. First National Bank Minnesota's most recent annualized quarterly return on equity was 3.94 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $855,000 on total equity of $21.9 million. The bank experienced an annualized return on average assets, or ROA, of 0.42 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.