A bank's earnings performance affects its long-term survivability. A bank can retain its earnings, expanding its capital buffer, or use them to deal with problematic loans, likely making the bank more resilient in times of trouble. Losses, on the other hand, diminish a bank's ability to do those things.
On Bankrate's earnings test, Fall River Five Cents Savings Bank scored 6 out of a possible 30, coming in below the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. Fall River Five Cents Savings Bank's most recent annualized quarterly return on equity was 2.95 percent, below the national average of 8.10 percent.
The bank recorded net income of $2.4 million on total equity of $80.8 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.28 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.