A bank's earnings performance has an effect on its long-term survivability. A bank can retain its earnings, giving a boost to its capital cushion, or use them to address problematic loans, likely making the bank more resilient in times of trouble. Obviously, banks that are losing money have less ability to do those things.
Avidia Bank received above-average marks on Bankrate's test of earnings, achieving a score of 16 out of a possible 30.
One widely used measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. Avidia Bank's most recent annualized quarterly return on equity was 8.08 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $10.9 million on total equity of $152.5 million. The bank had 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.