How profitable a bank is affects its safety and soundness. A bank can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, potentially making the bank more resilient in tough times. Obviously, banks that are losing money have less ability to do those things.
On Bankrate's test of earnings, Mutual Savings Bank scored 0 out of a possible 30, lower than the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one widely used measure of a bank's earnings. Mutual Savings Bank's most recent annualized quarterly return on equity was -0.04 percent, below the national average of 8.10 percent.
The bank reported net income of $-6,000 on total equity of $13.7 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of -0.02 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.