A bank's earnings performance affects its long-term survivability. A bank can retain its earnings, increasing its capital buffer, or use them to address problematic loans, potentially making the bank better able to withstand economic trouble. Banks that are losing money, however, are less able to do those things.
North Brookfield Savings Bank fell behind the national average on Bankrate's earnings test, achieving a score of 4 out of a possible 30.
One key way to measure a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by the total amount of equity. North Brookfield Savings Bank's most recent annualized quarterly return on equity was 1.22 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $431,000 on total equity of $35.1 million. The bank experienced an annualized return on average assets, or ROA, of 0.15 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.