A bank's profitability affects its safety and soundness. Earnings can be retained by the bank, giving a boost to its capital buffer, or be used to address problematic loans, potentially making the bank better able to withstand economic trouble. However, banks that are losing money are less able to do those things.
On Bankrate's earnings test, Think Mutual Bank scored 10 out of a possible 30, coming in below the national average of 15.12.
One key measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. The most recent annualized quarterly return on equity for Think Mutual Bank was 4.94 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $12.0 million on total equity of $246.9 million. The bank experienced an annualized return on average assets, or ROA, of 0.74 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.