A bank's ability to earn money affects its long-term survivability. Earnings can be retained by the bank, giving a boost to its capital buffer, or be used to address problematic loans, potentially making the bank better able to withstand economic trouble. Obviously, banks that are losing money are less able to do those things.
On Bankrate's earnings test, BEST HOMETOWN BANK scored 0 out of a possible 30, falling short of the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity, is one key measure of a bank's earnings. The most recent annualized quarterly return on equity for BEST HOMETOWN BANK was -3.30 percent, below the national average of 8.10 percent.
The bank earned net income of $-358,000 on total equity of $10.8 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of -0.32 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.