A bank's ability to earn money affects its safety and soundness. Earnings can be retained by the bank, expanding its capital cushion, or be used to address problematic loans, likely making the bank more resilient in times of trouble. Obviously, banks that are losing money are less able to do those things.
The Braintree Co-operative Bank received below-average marks on Bankrate's earnings test, achieving a score of 4 out of a possible 30.
Return on equity, calculated by dividing net income (essentially, profit) by the total amount of equity, is one widely used measure of a bank's earnings. The most recent annualized quarterly return on equity for The Braintree Co-operative Bank was 1.61 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank recorded net income of $166,000 on total equity of $20.9 million. The bank had an annualized return on average assets, or ROA, of 0.13 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.