How profitable a bank is affects its long-term survivability. Earnings may be retained by the bank, increasing its capital buffer, or be used to address problematic loans, likely making the bank better able to withstand economic shocks. Banks that are losing money, however, are less able to do those things.
Bankers' Bank, Northeast scored 14 out of a possible 30 on Bankrate's test of earnings, failing to reach the national average of 15.12.
One important measure of a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. Bankers' Bank, Northeast's most recent annualized quarterly return on equity was 6.30 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $1.1 million on total equity of $16.7 million. The bank had an annualized return on average assets, or ROA, of 0.65 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.