A bank's ability to earn money affects its safety and soundness. A bank can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, likely making the bank more resilient in tough times. Conversely, losses diminish a bank's ability to do those things.
First Federal Savings and Loan Association of San Rafael scored 4 out of a possible 30 on Bankrate's test of earnings, below the national average of 15.12.
One key way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. The most recent annualized quarterly return on equity for First Federal Savings and Loan Association of San Rafael was 1.72 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $672,000 on total equity of $39.5 million. The bank experienced an annualized return on average assets, or ROA, of 0.35 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.