How profitable a bank is affects its long-term survivability. Earnings can be retained by the bank, giving a boost to its capital buffer, or be used to deal with problematic loans, likely making the bank better prepared to withstand economic shocks. Conversely, losses diminish a bank's ability to do those things.
Chelten Hills Savings Bank scored 10 out of a possible 30 on Bankrate's test of earnings, less than the national average of 16.52.
One key way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. Chelten Hills Savings Bank's most recent annualized quarterly return on equity was 4.82 percent, below the national average of 9.28 percent.
The bank earned net income of $86,000 on total equity of $3.6 million for the twelve months ended June 30, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.66 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.