A bank's earnings performance affects its long-term survivability. Earnings can be retained by the bank, giving a boost to its capital buffer, or be used to deal with problematic loans, potentially making the bank more resilient in times of trouble. Conversely, losses diminish a bank's ability to do those things.
Webster Five Cents Savings Bank scored 12 out of a possible 30 on Bankrate's test of earnings, falling short of the national average of 15.12.
One widely used way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. The most recent annualized quarterly return on equity for Webster Five Cents Savings Bank was 5.37 percent, below the national average of 8.10 percent.
The bank reported net income of $5.2 million on total equity of $99.6 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.65 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.