A bank's earnings performance affects its safety and soundness. Earnings may be retained by the bank, expanding its capital buffer, or be used to address problematic loans, likely making the bank better able to withstand financial shocks. Losses, on the other hand, reduce a bank's ability to do those things.
Chelsea Savings Bank scored 18 out of a possible 30 on Bankrate's test of earnings, better than the national average of 15.12.
One key way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. The most recent annualized quarterly return on equity for Chelsea Savings Bank was 8.41 percent, above the national average of 8.10 percent.
The bank reported net income of $1.9 million on total equity of $22.6 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 1.50 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.