A bank's earnings performance affects its long-term survivability. A bank can retain its earnings, boosting its capital cushion, or use them to address problematic loans, likely making the bank more resilient in tough times. Losses, on the other hand, reduce a bank's ability to do those things.
On Bankrate's earnings test, First Federal Bank scored 22 out of a possible 30, exceeding the national average of 15.12.
One key measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. First Federal Bank's most recent annualized quarterly return on equity was 13.99 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $8.0 million on total equity of $58.3 million. The bank experienced an annualized return on average assets, or ROA, of 1.58 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.