How profitable a bank is affects its safety and soundness. Earnings can be retained by the bank, giving a boost to its capital cushion, or be used to address problematic loans, likely making the bank better prepared to withstand financial trouble. Losses, on the other hand, take away from a bank's ability to do those things.
On Bankrate's earnings test, Marblehead Bank scored 0 out of a possible 30, failing to reach the national average of 15.12.
One widely used way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. Marblehead Bank's most recent annualized quarterly return on equity was -1.60 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $-293,000 on total equity of $17.9 million. The bank reported an annualized return on average assets, or ROA, of -0.14 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.