A bank's profitability affects its safety and soundness. Earnings may be retained by the bank, expanding its capital buffer, or be used to deal with problematic loans, likely making the bank more resilient in tough times. Losses, on the other hand, reduce a bank's ability to do those things.
North Cambridge Co-operative Bank underperformed the average on Bankrate's earnings test, achieving a score of 4 out of a possible 30.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one important way to measure a bank's earnings. The most recent annualized quarterly return on equity for North Cambridge Co-operative Bank was 1.54 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $311,000 on total equity of $20.3 million. The bank experienced an annualized return on average assets, or ROA, of 0.35 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.