How profitable a bank is has an effect on its safety and soundness. Earnings may be retained by the bank, increasing its capital buffer, or be used to deal with problematic loans, potentially making the bank better able to withstand financial trouble. Conversely, losses diminish a bank's ability to do those things.
On Bankrate's earnings test, Belmont Savings Bank scored 12 out of a possible 30, lower than the national average of 15.12.
One important way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. Belmont Savings Bank's most recent annualized quarterly return on equity was 5.40 percent, below the national average of 8.10 percent.
The bank earned net income of $3.5 million on total equity of $66.0 million for the twelve months ended December 31, 2017. The bank had 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.