A bank's profitability has an effect on its safety and soundness. A bank can retain its earnings, boosting its capital buffer, or use them to deal with problematic loans, potentially making the bank better prepared to withstand economic trouble. Losses, on the other hand, reduce a bank's ability to do those things.
Walden Savings Bank received below-average marks on Bankrate's earnings test, achieving a score of 8 out of a possible 30.
Return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity, is one important way to measure a bank's earnings. Walden Savings Bank's most recent annualized quarterly return on equity was 3.67 percent, below the national average of 8.10 percent.
The bank recorded net income of $1.7 million on total equity of $47.6 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.32 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.