How profitable a bank is affects its safety and soundness. Earnings may be retained by the bank, increasing its capital cushion, or be used to deal with problematic loans, likely making the bank better prepared to withstand economic trouble. Conversely, losses take away from a bank's ability to do those things.
On Bankrate's earnings test, First Federal Savings Bank scored 18 out of a possible 30, above the national average of 15.12.
Return on equity, calculated by dividing net income (essentially, profit) by the total amount of equity, is one important measure of a bank's earnings. First Federal Savings Bank's most recent annualized quarterly return on equity was 10.16 percent, above the national average of 8.10 percent.
The bank reported net income of $3.5 million on total equity of $35.3 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.16 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.