How profitable a bank is affects its long-term survivability. A bank can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, potentially making the bank better prepared to withstand financial trouble. Conversely, losses take away from a bank's ability to do those things.
Spencer Savings Bank, SLA underperformed the average on Bankrate's earnings test, achieving a score of 4 out of a possible 30.
One important measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. The most recent annualized quarterly return on equity for Spencer Savings Bank, SLA was 1.94 percent, below the national average of 8.10 percent.
The bank earned net income of $5.9 million on total equity of $304.9 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.22 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.