How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, potentially making the bank more resilient in times of trouble. Losses, on the other hand, lessen a bank's ability to do those things.
Central Federal Savings and Loan Association scored 8 out of a possible 30 on Bankrate's earnings test, lower than the national average of 15.12.
One key way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. Central Federal Savings and Loan Association's most recent annualized quarterly return on equity was 3.64 percent, below the national average of 8.10 percent.
The bank reported net income of $622,000 on total equity of $17.4 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.35 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.