A bank's profitability 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 tough times. However, banks that are losing money have less ability to do those things.
MutualOne Bank fell short of the national average on Bankrate's earnings test, achieving a score of 16 out of a possible 30.
One important way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. The most recent annualized quarterly return on equity for MutualOne Bank was 7.68 percent, below the national average of 8.10 percent.
The bank reported net income of $10.5 million on total equity of $142.3 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 1.37 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.