A bank's earnings performance has an effect on its safety and soundness. A bank can retain its earnings, increasing its capital cushion, or use them to address problematic loans, potentially making the bank better able to withstand economic trouble. Conversely, losses lessen a bank's ability to do those things.
Cambridge Savings Bank scored 16 out of a possible 30 on Bankrate's test of earnings, failing to reach the national average of 16.52.
Return on equity, calculated by dividing net income (profit, basically) by the total amount of equity, is one key measure of a bank's earnings. Cambridge Savings Bank's most recent annualized quarterly return on equity was 7.64 percent, below the national average of 9.28 percent.
The bank earned net income of $12.2 million on total equity of $327.1 million for the twelve months ended June 30, 2017. The bank had an annualized return on average assets, or ROA, of 0.70 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.