A bank's ability to earn money has an effect on its safety and soundness. A bank can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, likely making the bank better able to withstand financial shocks. Obviously, banks that are losing money have less ability to do those things.
Henderson Federal Savings Bank scored 6 out of a possible 30 on Bankrate's test of earnings, failing to reach the national average of 15.12.
One key way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. Henderson Federal Savings Bank's most recent annualized quarterly return on equity was 2.36 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $512,000 on total equity of $21.8 million. The bank had an annualized return on average assets, or ROA, of 0.46 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.