How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, potentially making the bank better able to withstand economic shocks. Obviously, banks that are losing money are less able to do those things.
On Bankrate's earnings test, MINNESOTA LAKES BANK scored 2 out of a possible 30, less than the national average of 15.12.
One key way to measure a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by the total amount of equity. The most recent annualized quarterly return on equity for MINNESOTA LAKES BANK was 0.33 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $39,000 on total equity of $11.7 million. The bank experienced an annualized return on average assets, or ROA, of 0.04 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.