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, likely making the bank better able to withstand financial shocks. Banks that are losing money, however, have less ability to do those things.
NorthEast Community Bank received above-average marks on Bankrate's earnings test, achieving a score of 16 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 NorthEast Community Bank was 7.73 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $7.7 million on total equity of $104.1 million. The bank experienced an annualized return on average assets, or ROA, of 1.02 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.