A bank's profitability affects its safety and soundness. A bank can retain its earnings, giving a boost to its capital buffer, or use them to deal with problematic loans, likely making the bank more resilient in tough times. Losses, on the other hand, reduce a bank's ability to do those things.
Bank of New England scored 18 out of a possible 30 on Bankrate's earnings test, beating out the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. The most recent annualized quarterly return on equity for Bank of New England was 10.27 percent, above the national average of 8.10 percent.
The bank earned net income of $11.6 million on total equity of $118.1 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.28 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.