How profitable a bank is affects its safety and soundness. Earnings may be retained by the bank, increasing its capital cushion, or be used to address problematic loans, potentially making the bank better prepared to withstand economic shocks. Losses, on the other hand, lessen a bank's ability to do those things.
On Bankrate's earnings test, Eastern National Bank scored 6 out of a possible 30, below the national average of 15.12.
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. The most recent annualized quarterly return on equity for Eastern National Bank was 2.01 percent, below the national average of 8.10 percent.
The bank recorded net income of $862,000 on total equity of $43.0 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.17 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.