How profitable a bank is affects its long-term survivability. A bank can retain its earnings, giving a boost to its capital cushion, or use them to address problematic loans, likely making the bank better prepared to withstand economic trouble. Banks that are losing money, however, are less able to do those things.
First Federal Savings & Loan Association of Ravenswood fell short of the national average on Bankrate's earnings test, achieving a score of 12 out of a possible 30.
One widely used 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 & Loan Association of Ravenswood was 5.58 percent, below the national average of 8.10 percent.
The bank recorded net income of $99,000 on total equity of $1.8 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.56 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.