How profitable a bank is affects its safety and soundness. 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 times of trouble. Banks that are losing money, however, are less able to do those things.
First Federal Bank of Louisiana scored 4 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 15.12.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one important way to measure a bank's earnings. First Federal Bank of Louisiana's most recent annualized quarterly return on equity was 1.41 percent, below the national average of 8.10 percent.
The bank recorded net income of $1.4 million on total equity of $102.0 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.18 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.