A bank's ability to earn money has an effect on its safety and soundness. Earnings can be retained by the bank, boosting its capital buffer, or be used to deal with problematic loans, potentially making the bank more resilient in times of trouble. However, banks that are losing money have less ability to do those things.
Boiling Springs Savings Bank scored 8 out of a possible 30 on Bankrate's test of earnings, falling short of the national average of 15.12.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by the total amount of equity. Boiling Springs Savings Bank's most recent annualized quarterly return on equity was 3.17 percent, below the national average of 8.10 percent.
The bank recorded net income of $6.6 million on total equity of $210.3 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.39 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.