How profitable a bank is has an effect on its long-term survivability. Earnings can be retained by the bank, expanding its capital buffer, or be used to deal with problematic loans, potentially making the bank better able to withstand financial shocks. Conversely, losses diminish a bank's ability to do those things.
Financial Federal Bank did above-average on Bankrate's test of earnings, achieving a score of 20 out of a possible 30.
One key way to measure a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by the total amount of equity. Financial Federal Bank's most recent annualized quarterly return on equity was 11.91 percent, above the national average of 8.10 percent.
The bank recorded net income of $8.4 million on total equity of $71.0 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.65 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.