A bank's earnings performance has an effect on its safety and soundness. A bank can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, likely making the bank better able to withstand economic trouble. Conversely, losses take away from a bank's ability to do those things.
First Federal Savings and Loan Association received below-average marks on Bankrate's test of earnings, achieving a score of 4 out of a possible 30.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by the total amount of equity. First Federal Savings and Loan Association's most recent annualized quarterly return on equity was 1.65 percent, below the national average of 8.10 percent.
The bank recorded net income of $322,000 on total equity of $19.7 million for the twelve months ended December 31, 2017. The bank had 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.