How profitable a bank is affects its safety and soundness. Earnings can be retained by the bank, giving a boost to its capital buffer, or be used to address problematic loans, likely making the bank more resilient in tough times. Obviously, banks that are losing money are less able to do those things.
Chinatown Federal Savings Bank fell behind the national average on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one important way to measure a bank's earnings. The most recent annualized quarterly return on equity for Chinatown Federal Savings Bank was -0.32 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $-91,000 on total equity of $25.2 million. The bank experienced an annualized return on average assets, or ROA, of -0.07 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.