A bank's earnings performance affects its long-term survivability. A bank can retain its earnings, boosting its capital cushion, or use them to deal with problematic loans, potentially making the bank more resilient in times of trouble. Banks that are losing money, however, are less able to do those things.
On Bankrate's earnings test, East Cambridge Savings Bank scored 6 out of a possible 30, below the national average of 15.12.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by the total amount of equity. East Cambridge Savings Bank's most recent annualized quarterly return on equity was 2.19 percent, below the national average of 8.10 percent.
The bank earned net income of $2.2 million on total equity of $101.1 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.21 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.