A bank's earnings performance 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, potentially making the bank better able to withstand economic shocks. Losses, on the other hand, diminish a bank's ability to do those things.
Middlesex Federal Savings, F.A. scored 0 out of a possible 30 on Bankrate's test of earnings, falling short of the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. Middlesex Federal Savings, F.A.'s most recent annualized quarterly return on equity was -1.95 percent, below the national average of 8.10 percent.
The bank recorded net income of $-759,000 on total equity of $37.5 million for the twelve months ended December 31, 2017. 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.