A bank's earnings performance has an effect on its long-term survivability. Earnings can be retained by the bank, expanding its capital buffer, or be used to deal with problematic loans, potentially making the bank better able to withstand economic trouble. Obviously, banks that are losing money have less ability to do those things.
On Bankrate's test of earnings, Meredith Village Savings Bank scored 16 out of a possible 30, falling short of the national average of 16.52.
Return on equity, calculated by dividing net income (profit, basically) by the total amount of equity, is one key measure of a bank's earnings. Meredith Village Savings Bank's most recent annualized quarterly return on equity was 8.13 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank earned net income of $3.8 million on total equity of $94.3 million. The bank experienced an annualized return on average assets, or ROA, of 0.88 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.