A bank's ability to earn money has an effect on its long-term survivability. Earnings may be retained by the bank, increasing its capital buffer, or be used to deal with problematic loans, likely making the bank better prepared to withstand economic trouble. Losses, on the other hand, lessen a bank's ability to do those things.
Bank of Easton received below-average marks on Bankrate's test of earnings, achieving a score of 10 out of a possible 30.
One widely used way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. The most recent annualized quarterly return on equity for Bank of Easton was 4.72 percent, below the national average of 8.10 percent.
The bank reported net income of $723,000 on total equity of $15.5 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.53 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.