A bank's profitability affects its safety and soundness. Earnings can be retained by the bank, boosting its capital buffer, or be used to deal with problematic loans, likely making the bank better able to withstand financial trouble. Banks that are losing money, however, are less able to do those things.
Bankwell Bank received above-average marks on Bankrate's earnings test, achieving a score of 18 out of a possible 30.
Return on equity, calculated by dividing net income (essentially, profit) by the total amount of equity, is one key measure of a bank's earnings. Bankwell Bank's most recent annualized quarterly return on equity was 9.42 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $16.1 million on total equity of $178.8 million. The bank reported an annualized return on average assets, or ROA, of 0.93 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.