How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, increasing its capital buffer, or use them to deal with problematic loans, potentially making the bank more resilient in tough times. Losses, on the other hand, diminish a bank's ability to do those things.
Stearns Bank Upsala National Association scored 8 out of a possible 30 on Bankrate's test of earnings, coming in below the national average of 15.12.
One important way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. The most recent annualized quarterly return on equity for Stearns Bank Upsala National Association was 3.64 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $394,000 on total equity of $11.0 million. The bank experienced an annualized return on average assets, or ROA, of 0.61 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.