How profitable a bank is affects its long-term survivability. A bank can retain its earnings, increasing its capital cushion, or use them to address problematic loans, potentially making the bank more resilient in times of trouble. Banks that are losing money, however, have less ability to do those things.
Stafford Savings Bank outperformed the average on Bankrate's earnings test, achieving a score of 16 out of a possible 30.
One key measure of a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. Stafford Savings Bank's most recent annualized quarterly return on equity was 8.54 percent, above the national average of 8.10 percent.
The bank recorded net income of $8.5 million on total equity of $111.3 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 3.03 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.