How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, potentially making the bank better able to withstand financial trouble. Banks that are losing money, however, are less able to do those things.
The MassMutual Trust Company beat the national average on Bankrate's earnings test, achieving a score of 22 out of a possible 30.
One key measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. The most recent annualized quarterly return on equity for The MassMutual Trust Company was 13.13 percent, above the national average of 8.10 percent.
The bank reported net income of $2.7 million on total equity of $22.0 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 3.50 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.