A bank's earnings performance has an effect on its safety and soundness. A bank can retain its earnings, giving a boost to its capital buffer, or use them to deal with problematic loans, likely making the bank better prepared to withstand financial shocks. Banks that are losing money, however, are less able to do those things.
On Bankrate's test of earnings, Minnesota First Credit and Savings, Incorporated scored 10 out of a possible 30, coming in below the national average of 15.12.
One important measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. Minnesota First Credit and Savings, Incorporated's most recent annualized quarterly return on equity was 5.05 percent, below the national average of 8.10 percent.
The bank earned net income of $204,000 on total equity of $4.1 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.73 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.