A bank's earnings performance affects its long-term survivability. Earnings can be retained by the bank, increasing its capital cushion, or be used to deal with problematic loans, likely making the bank more resilient in tough times. However, banks that are losing money have less ability to do those things.
Fairfield Federal Savings and Loan Association of Lancaster scored 10 out of a possible 30 on Bankrate's test of earnings, lower than the national average of 15.12.
One important way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. The most recent annualized quarterly return on equity for Fairfield Federal Savings and Loan Association of Lancaster was 4.22 percent, below the national average of 8.10 percent.
The bank earned net income of $1.1 million on total equity of $27.8 million for the twelve months ended December 31, 2017. The bank reported 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.