How profitable a bank is has an effect on its safety and soundness. Earnings can be retained by the bank, giving a boost to its capital cushion, or be used to deal with problematic loans, potentially making the bank more resilient in tough times. Losses, on the other hand, take away from a bank's ability to do those things.
Dalhart Federal Savings & Loan Association, SSB underperformed the average on Bankrate's test of earnings, achieving a score of 8 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. Dalhart Federal Savings & Loan Association, SSB's most recent annualized quarterly return on equity was 3.84 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $488,000 on total equity of $13.0 million. The bank had an annualized return on average assets, or ROA, of 0.43 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.