A bank's earnings performance has an effect on its long-term survivability. Earnings may be retained by the bank, increasing its capital cushion, or be used to deal with problematic loans, likely making the bank better able to withstand economic trouble. Banks that are losing money, however, are less able to do those things.
Belmont Federal Savings and Loan Association fell behind the national average on Bankrate's earnings test, achieving a score of 6 out of a possible 30.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. Belmont Federal Savings and Loan Association's most recent annualized quarterly return on equity was 2.35 percent, below the national average of 8.10 percent.
The bank recorded net income of $430,000 on total equity of $18.5 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.45 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.