A bank's profitability has an effect on its safety and soundness. Earnings can be retained by the bank, giving a boost to its capital buffer, or be used to deal with problematic loans, likely making the bank more resilient in times of trouble. Losses, on the other hand, reduce a bank's ability to do those things.
Bay State Savings Bank exceeded the national average on Bankrate's test of earnings, achieving a score of 16 out of a possible 30.
One key way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. Bay State Savings Bank's most recent annualized quarterly return on equity was 8.07 percent, below the national average of 8.10 percent.
The bank earned net income of $2.9 million on total equity of $36.7 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.73 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.