A bank's earnings performance has an effect on its safety and soundness. Earnings can be retained by the bank, giving a boost to its capital cushion, or be used to deal with problematic loans, likely making the bank better able to withstand financial trouble. However, banks that are losing money are less able to do those things.
On Bankrate's test of earnings, First Financial Northwest Bank scored 16 out of a possible 30, above the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity, is one important way to measure a bank's earnings. First Financial Northwest Bank's most recent annualized quarterly return on equity was 7.71 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $9.3 million on total equity of $123.0 million. The bank had an annualized return on average assets, or ROA, of 0.84 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.