How profitable a bank is affects its long-term survivability. A bank can retain its earnings, expanding its capital cushion, or use them to deal with problematic loans, likely making the bank more resilient in tough times. Conversely, losses lessen a bank's ability to do those things.
Mitchell Bank scored 4 out of a possible 30 on Bankrate's earnings test, lower than the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by the total amount of equity. The most recent annualized quarterly return on equity for Mitchell Bank was 1.14 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $92,000 on total equity of $8.1 million. The bank reported an annualized return on average assets, or ROA, of 0.18 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.