How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, potentially making the bank better prepared to withstand financial trouble. Conversely, losses lessen a bank's ability to do those things.
Iron Workers Savings Bank scored 4 out of a possible 30 on Bankrate's test of earnings, coming in below the national average of 15.12.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one key measure of a bank's earnings. Iron Workers Savings Bank's most recent annualized quarterly return on equity was 1.14 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $191,000 on total equity of $16.7 million. The bank experienced an annualized return on average assets, or ROA, of 0.11 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.