A bank's earnings performance affects its long-term survivability. Earnings may be retained by the bank, expanding its capital cushion, or be used to address problematic loans, potentially making the bank better prepared to withstand economic trouble. Obviously, banks that are losing money have less ability to do those things.
The Brattleboro Savings and Loan Association fell short of the national average on Bankrate's earnings test, achieving a score of 10 out of a possible 30.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one important measure of a bank's earnings. The Brattleboro Savings and Loan Association's most recent annualized quarterly return on equity was 4.49 percent, below the national average of 8.10 percent.
The bank reported net income of $747,000 on total equity of $17.0 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.41 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.