A bank's ability to earn money has an effect on its safety and soundness. Earnings may be retained by the bank, boosting its capital buffer, or be used to address problematic loans, likely making the bank more resilient in times of trouble. Conversely, losses diminish a bank's ability to do those things.
Eastern Savings Bank scored 0 out of a possible 30 on Bankrate's test of earnings, failing to reach the national average of 15.12.
One important measure of a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. Eastern Savings Bank's most recent annualized quarterly return on equity was -3.63 percent, below the national average of 8.10 percent.
The bank recorded net income of $-579,000 on total equity of $15.5 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of -0.31 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.