A bank's earnings performance has an effect on its safety and soundness. Earnings may be retained by the bank, giving a boost to its capital buffer, or be used to deal with problematic loans, potentially making the bank better able to withstand financial shocks. However, banks that are losing money are less able to do those things.
On Bankrate's test of earnings, Fidelity Savings and Loan Association of Bucks Co scored 2 out of a possible 30, lower than the national average of 15.12.
One key way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. The most recent annualized quarterly return on equity for Fidelity Savings and Loan Association of Bucks Co was 0.87 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $107,000 on total equity of $12.4 million. The bank experienced an annualized return on average assets, or ROA, of 0.12 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.