A bank's earnings performance has an effect on its safety and soundness. A bank can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, potentially making the bank better able to withstand economic trouble. Conversely, losses take away from a bank's ability to do those things.
Homeland Federal Savings Bank beat the national average on Bankrate's test of earnings, achieving a score of 22 out of a possible 30.
Return on equity, calculated by dividing net income (essentially, profit) by the total amount of equity, is one key measure of a bank's earnings. Homeland Federal Savings Bank's most recent annualized quarterly return on equity was 15.18 percent, above the national average of 8.10 percent.
The bank recorded net income of $3.5 million on total equity of $26.0 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.57 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.