How profitable a bank is affects its long-term survivability. A bank can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, likely making the bank more resilient in times of trouble. However, banks that are losing money have less ability to do those things.
On Bankrate's earnings test, Westfield Bank scored 16 out of a possible 30, falling short of the national average of 16.52.
Return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity, is one widely used measure of a bank's earnings. Westfield Bank's most recent annualized quarterly return on equity was 7.31 percent, below the national average of 9.28 percent.
The bank recorded net income of $8.6 million on total equity of $240.7 million for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 0.83 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.