How profitable a bank is affects its long-term survivability. A bank can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, potentially making the bank more resilient in times of trouble. Losses, on the other hand, diminish a bank's ability to do those things.
First Federal Savings and Loan Association scored 6 out of a possible 30 on Bankrate's earnings test, less than the national average of 15.12.
One key measure of a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. The most recent annualized quarterly return on equity for First Federal Savings and Loan Association was 2.04 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $91,000 on total equity of $4.5 million. The bank reported an annualized return on average assets, or ROA, of 0.38 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.