How profitable a bank is affects its safety and soundness. A bank can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, likely making the bank more resilient in tough times. Losses, on the other hand, take away from a bank's ability to do those things.
Carrollton Federal Bank did below-average on Bankrate's test of earnings, achieving a score of 8 out of a possible 30.
One important way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. Carrollton Federal Bank's most recent annualized quarterly return on equity was 3.06 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $151,000 on total equity of $5.0 million. The bank had 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.