A bank's profitability has an effect on its long-term survivability. Earnings may be retained by the bank, giving a boost to its capital buffer, or be used to address problematic loans, potentially making the bank better prepared to withstand financial trouble. However, banks that are losing money are less able to do those things.
Brunswick Bank and Trust Company scored 6 out of a possible 30 on Bankrate's earnings test, lower than 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 total equity. Brunswick Bank and Trust Company's most recent annualized quarterly return on equity was 2.11 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $542,000 on total equity of $26.2 million. The bank experienced an annualized return on average assets, or ROA, of 0.30 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.