How profitable a bank is affects its long-term survivability. A bank can retain its earnings, giving a boost to its capital buffer, or use them to address problematic loans, potentially making the bank better prepared to withstand economic trouble. However, banks that are losing money have less ability to do those things.
Cincinnati Federal underperformed the average on Bankrate's test of earnings, achieving a score of 12 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. Cincinnati Federal's most recent annualized quarterly return on equity was 5.21 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $963,000 on total equity of $18.6 million. The bank experienced an annualized return on average assets, or ROA, of 0.60 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.