A bank's ability to earn money has an effect on its long-term survivability. Earnings can be retained by the bank, boosting its capital buffer, or be used to deal with problematic loans, potentially making the bank better able to withstand financial shocks. Conversely, losses diminish a bank's ability to do those things.
Bay-Vanguard Federal Savings Bank scored 2 out of a possible 30 on Bankrate's test of earnings, below 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. The most recent annualized quarterly return on equity for Bay-Vanguard Federal Savings Bank was 0.99 percent, below the national average of 8.10 percent.
The bank earned net income of $203,000 on total equity of $20.5 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.12 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.