A bank's ability to earn money has an effect on its long-term survivability. A bank can retain its earnings, boosting its capital buffer, or use them to address problematic loans, potentially making the bank more resilient in times of trouble. Losses, on the other hand, lessen a bank's ability to do those things.
Wakefield Co-operative Bank fell short of the national average on Bankrate's test of earnings, achieving a score of 8 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 the total amount of equity. Wakefield Co-operative Bank's most recent annualized quarterly return on equity was 3.91 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $644,000 on total equity of $16.6 million. The bank reported an annualized return on average assets, or ROA, of 0.31 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.