A bank's earnings performance affects its safety and soundness. A bank can retain its earnings, boosting its capital cushion, or put them to work addressing 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.
Miner County Bank underperformed the average on Bankrate's earnings test, achieving a score of 12 out of a possible 30.
One key measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. The most recent annualized quarterly return on equity for Miner County Bank was 5.35 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank reported net income of $160,000 on total equity of $6.0 million. The bank reported an annualized return on average assets, or ROA, of 0.62 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.