How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, likely making the bank better able to withstand economic shocks. Obviously, banks that are losing money are less able to do those things.
Itasca Bank & Trust Co. scored 20 out of a possible 30 on Bankrate's test of earnings, better than the national average of 15.12.
One important way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. Itasca Bank & Trust Co.'s most recent annualized quarterly return on equity was 10.51 percent, above the national average of 8.10 percent.
The bank earned net income of $5.0 million on total equity of $49.4 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 1.00 percent, right at the level deemed satisfactory in accordance with industry standards, and equal to the average for U.S. banks of 1.00 percent.