How profitable a bank is affects its safety and soundness. A bank can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, potentially making the bank better prepared to withstand economic shocks. Losses, on the other hand, diminish a bank's ability to do those things.
Foxboro Federal Savings underperformed the average on Bankrate's earnings test, achieving a score of 6 out of a possible 30.
One widely used measure of a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. Foxboro Federal Savings's most recent annualized quarterly return on equity was 2.73 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $699,000 on total equity of $25.9 million. The bank reported an annualized return on average assets, or ROA, of 0.43 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.