A bank's earnings performance affects its safety and soundness. Earnings may be retained by the bank, giving a boost to its capital buffer, or be used to address problematic loans, potentially making the bank more resilient in times of trouble. Losses, on the other hand, take away from a bank's ability to do those things.
West View Savings Bank fell behind the national average on Bankrate's earnings test, achieving a score of 12 out of a possible 30.
One widely used way to measure a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by the total amount of equity. West View Savings Bank's most recent annualized quarterly return on equity was 5.62 percent, below the national average of 8.10 percent.
The bank recorded net income of $1.8 million on total equity of $31.6 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.50 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.