A bank's earnings performance has an effect on its long-term survivability. A bank can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, likely making the bank better able to withstand economic trouble. Banks that are losing money, however, have less ability to do those things.
On Bankrate's test of earnings, Premier Bank Minnesota scored 26 out of a possible 30, beating the national average of 15.12.
Return on equity, calculated by dividing net income (essentially, profit) by the total amount of equity, is one important way to measure a bank's earnings. Premier Bank Minnesota's most recent annualized quarterly return on equity was 17.24 percent, above the national average of 8.10 percent.
The bank reported net income of $3.5 million on total equity of $21.2 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.72 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.