How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, expanding its capital cushion, or use them to deal with problematic loans, potentially making the bank more resilient in tough times. Losses, on the other hand, lessen a bank's ability to do those things.
Kentucky Federal Savings and Loan Association scored 0 out of a possible 30 on Bankrate's test of earnings, less than the national average of 15.12.
One important measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. Kentucky Federal Savings and Loan Association's most recent annualized quarterly return on equity was -0.20 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $-6,000 on total equity of $3.0 million. The bank had an annualized return on average assets, or ROA, of -0.02 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.