A bank's profitability affects its safety and soundness. A bank can retain its earnings, boosting its capital buffer, or use them to deal with problematic loans, likely making the bank better able to withstand economic trouble. Banks that are losing money, however, are less able to do those things.
Milton Savings Bank underperformed the average on Bankrate's test of earnings, achieving a score of 8 out of a possible 30.
One important way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. Milton Savings Bank's most recent annualized quarterly return on equity was 3.33 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $483,000 on total equity of $14.7 million. The bank experienced an annualized return on average assets, or ROA, of 0.72 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.