How profitable a bank is affects its safety and soundness. A bank can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, potentially making the bank more resilient in times of trouble. However, banks that are losing money are less able to do those things.
First Federal Savings and Loan Association of Greene Co scored 4 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 15.12.
One key measure of a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by the total amount of equity. The most recent annualized quarterly return on equity for First Federal Savings and Loan Association of Greene Co was 1.85 percent, below the national average of 8.10 percent.
The bank reported net income of $2.3 million on total equity of $123.8 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.26 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.