A bank's profitability affects its safety and soundness. Earnings can be retained by the bank, expanding its capital buffer, or be used to deal with 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.
On Bankrate's earnings test, First Federal Bank of Florida scored 18 out of a possible 30, beating the national average of 15.12.
Return on equity, calculated by dividing net income (essentially, profit) by the total amount of equity, is one important way to measure a bank's earnings. First Federal Bank of Florida's most recent annualized quarterly return on equity was 10.01 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $17.1 million on total equity of $181.5 million. The bank had an annualized return on average assets, or ROA, of 1.24 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.