How profitable a bank is affects its safety and soundness. Earnings can be retained by the bank, boosting its capital cushion, or be used to address problematic loans, likely making the bank better prepared to withstand financial trouble. Losses, on the other hand, take away from a bank's ability to do those things.
On Bankrate's test of earnings, Wrentham Co-operative Bank scored 2 out of a possible 30, failing to reach the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one important way to measure a bank's earnings. Wrentham Co-operative Bank's most recent annualized quarterly return on equity was 0.26 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $40,000 on total equity of $15.6 million. The bank experienced an annualized return on average assets, or ROA, of 0.03 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.