A bank's profitability has an effect on its long-term survivability. A bank can retain its earnings, increasing its capital cushion, or use them to deal with problematic loans, likely making the bank better prepared to withstand economic trouble. Losses, on the other hand, take away from a bank's ability to do those things.
Bar Harbor Savings and Loan Association scored 16 out of a possible 30 on Bankrate's earnings test, exceeding the national average of 15.12.
One widely used way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. Bar Harbor Savings and Loan Association's most recent annualized quarterly return on equity was 8.28 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $817,000 on total equity of $10.3 million. The bank experienced an annualized return on average assets, or ROA, of 0.80 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.