A bank's profitability affects its safety and soundness. Earnings may be retained by the bank, giving a boost to its capital cushion, or be used to address problematic loans, potentially making the bank better able to withstand economic trouble. However, banks that are losing money have less ability to do those things.
Wells River Savings Bank scored 0 out of a possible 30 on Bankrate's test of earnings, coming in below the national average of 15.12.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. Wells River Savings Bank's most recent annualized quarterly return on equity was -3.87 percent, below the national average of 8.10 percent.
The bank reported net income of $-778,000 on total equity of $19.3 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of -0.47 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.