A bank's profitability affects its safety and soundness. Earnings can be retained by the bank, boosting its capital cushion, or be used to address problematic loans, potentially making the bank better able to withstand financial trouble. Banks that are losing money, however, are less able to do those things.
Cape Ann Savings Bank scored 14 out of a possible 30 on Bankrate's test of earnings, lower than the national average of 15.12.
One important way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. The most recent annualized quarterly return on equity for Cape Ann Savings Bank was 6.44 percent, below the national average of 8.10 percent.
The bank earned net income of $8.9 million on total equity of $145.8 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 1.47 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.