A bank's earnings performance has an effect on its safety and soundness. A bank can retain its earnings, giving a boost to its capital buffer, or use them to deal with problematic loans, likely making the bank better able to withstand financial trouble. Obviously, banks that are losing money are less able to do those things.
On Bankrate's test of earnings, Northfield Bank scored 10 out of a possible 30, falling short of the national average of 15.12.
One widely used way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. Northfield Bank's most recent annualized quarterly return on equity was 4.17 percent, below the national average of 8.10 percent.
The bank recorded net income of $24.9 million on total equity of $594.5 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.64 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.