A bank's ability to earn money has an effect on its long-term survivability. Earnings can be retained by the bank, boosting its capital cushion, or be used to deal with problematic loans, potentially making the bank better able to withstand economic shocks. Conversely, losses take away from a bank's ability to do those things.
First Savings and Loan Association scored 6 out of a possible 30 on Bankrate's test of earnings, falling short of the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. First Savings and Loan Association's most recent annualized quarterly return on equity was 2.25 percent, below the national average of 8.10 percent.
The bank earned net income of $271,000 on total equity of $12.2 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.55 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.