How profitable a bank is affects its safety and soundness. A bank can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, potentially making the bank better able to withstand economic shocks. Conversely, losses reduce a bank's ability to do those things.
On Bankrate's test of earnings, Homestead Savings Bank scored 0 out of a possible 30, lower than the national average of 15.12.
One key measure of a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. Homestead Savings Bank's most recent annualized quarterly return on equity was 0.91 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $39,000 on total equity of $4.3 million. The bank experienced an annualized return on average assets, or ROA, of 0.06 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.