How profitable a bank is affects its long-term survivability. A bank can retain its earnings, expanding its capital buffer, or use them to address problematic loans, potentially making the bank more resilient in times of trouble. Conversely, losses take away from a bank's ability to do those things.
On Bankrate's earnings test, First Federal Savings and Loan Association of Greensburg scored 4 out of a possible 30, falling short of the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by the total amount of equity, is one widely used measure of a bank's earnings. The most recent annualized quarterly return on equity for First Federal Savings and Loan Association of Greensburg was 1.95 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $299,000 on total equity of $15.3 million. The bank reported an annualized return on average assets, or ROA, of 0.20 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.