How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, potentially making the bank better prepared to withstand economic trouble. Obviously, banks that are losing money are less able to do those things.
Fidelity Federal Savings and Loan Association of Delaware scored 2 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one important way to measure a bank's earnings. Fidelity Federal Savings and Loan Association of Delaware's most recent annualized quarterly return on equity was 0.65 percent, below the national average of 8.10 percent.
The bank earned net income of $143,000 on total equity of $22.0 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.14 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.