A bank's earnings performance has an effect on its safety and soundness. Earnings may be retained by the bank, giving a boost to its capital buffer, or be used to deal with problematic loans, potentially making the bank more resilient in times of trouble. Banks that are losing money, however, are less able to do those things.
North Easton Savings Bank fell short of the national average on Bankrate's test of earnings, achieving a score of 4 out of a possible 30.
One widely used way to measure a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. North Easton Savings Bank's most recent annualized quarterly return on equity was 1.87 percent, below the national average of 8.10 percent.
The bank reported net income of $826,000 on total equity of $43.9 million for the twelve months ended December 31, 2017. The bank reported 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.