How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, likely making the bank better prepared to withstand financial shocks. Conversely, losses take away from a bank's ability to do those things.
Bank of Bennington scored 12 out of a possible 30 on Bankrate's test of earnings, falling short of the national average of 15.12.
One key way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. Bank of Bennington's most recent annualized quarterly return on equity was 6.00 percent, below the national average of 8.10 percent.
The bank recorded net income of $788,000 on total equity of $13.3 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.69 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.