How profitable a bank is has an effect on its long-term survivability. Earnings may be retained by the bank, giving a boost to its capital cushion, or be used to address problematic loans, likely making the bank better prepared to withstand economic trouble. Banks that are losing money, however, have less ability to do those things.
The Marblehead Bank scored 12 out of a possible 30 on Bankrate's test of earnings, less than the national average of 15.12.
One important way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. The most recent annualized quarterly return on equity for The Marblehead Bank was 5.72 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $262,000 on total equity of $4.6 million. The bank experienced an annualized return on average assets, or ROA, of 0.55 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.