A bank's earnings performance has an effect on its safety and soundness. Earnings can be retained by the bank, increasing its capital buffer, or be used to deal with problematic loans, potentially making the bank better able to withstand economic shocks. Conversely, losses diminish a bank's ability to do those things.
On Bankrate's earnings test, Sugar River Bank scored 6 out of a possible 30, lower than the national average of 15.12.
One key way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. Sugar River Bank's most recent annualized quarterly return on equity was 2.52 percent, below the national average of 8.10 percent.
The bank recorded net income of $996,000 on total equity of $40.0 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.34 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.