A bank's ability to earn money has an effect on its long-term survivability. Earnings may be retained by the bank, expanding its capital buffer, or be used to address problematic loans, likely making the bank better able to withstand economic shocks. Conversely, losses diminish a bank's ability to do those things.
Liberty Savings Bank, F.S.B. outperformed the average on Bankrate's test of earnings, achieving a score of 22 out of a possible 30.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. Liberty Savings Bank, F.S.B.'s most recent annualized quarterly return on equity was 12.17 percent, above the national average of 8.10 percent.
The bank recorded net income of $7.5 million on total equity of $62.3 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 1.16 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.