How profitable a bank is has an effect on its safety and soundness. Earnings can be retained by the bank, giving a boost to its capital cushion, or be used to deal with problematic loans, potentially making the bank more resilient in times of trouble. Conversely, losses diminish a bank's ability to do those things.
On Bankrate's earnings test, Menno State Bank scored 18 out of a possible 30, above the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one widely used measure of a bank's earnings. Menno State Bank's most recent annualized quarterly return on equity was 9.09 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $359,000 on total equity of $3.9 million. The bank experienced an annualized return on average assets, or ROA, of 0.98 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.