A bank's ability to earn money affects its long-term survivability. 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 better able to withstand financial trouble. Losses, on the other hand, take away from a bank's ability to do those things.
On Bankrate's earnings test, Merchants and Manufacturers Bank scored 10 out of a possible 30, below the national average of 15.12.
One key way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. The most recent annualized quarterly return on equity for Merchants and Manufacturers Bank was 4.94 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $953,000 on total equity of $19.9 million. The bank had an annualized return on average assets, or ROA, of 0.40 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.