How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, giving a boost to its capital buffer, or use them to address problematic loans, likely making the bank better prepared to withstand economic trouble. However, banks that are losing money are less able to do those things.
On Bankrate's earnings test, Stearns Bank National Association scored 22 out of a possible 30, better than the national average of 15.12.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one key measure of a bank's earnings. The most recent annualized quarterly return on equity for Stearns Bank National Association was 13.19 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $46.3 million on total equity of $366.9 million. The bank had an annualized return on average assets, or ROA, of 2.39 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.