A bank's ability to earn money has an effect on its long-term survivability. A bank can retain its earnings, boosting its capital buffer, or use them to deal with problematic loans, potentially making the bank more resilient in times of trouble. Losses, on the other hand, take away from a bank's ability to do those things.
Fairport Savings Bank scored 4 out of a possible 30 on Bankrate's earnings test, failing to reach 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 total equity. Fairport Savings Bank's most recent annualized quarterly return on equity was 1.94 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $562,000 on total equity of $29.2 million. The bank experienced an annualized return on average assets, or ROA, of 0.19 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.