How profitable a bank is affects its safety and soundness. A bank can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, likely making the bank more resilient in tough times. Conversely, losses diminish a bank's ability to do those things.
Androscoggin Savings Bank underperformed the average on Bankrate's test of earnings, achieving a score of 6 out of a possible 30.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one widely used measure of a bank's earnings. Androscoggin Savings Bank's most recent annualized quarterly return on equity was 2.67 percent, below the national average of 8.10 percent.
The bank reported net income of $2.8 million on total equity of $104.2 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.29 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.