A bank's profitability affects its safety and soundness. Earnings may be retained by the bank, increasing its capital cushion, or be used to address problematic loans, potentially making the bank better able to withstand financial trouble. Banks that are losing money, however, are less able to do those things.
Loomis Federal Savings and Loan Association fell short of the national average on Bankrate's earnings test, achieving a score of 0 out of a possible 30.
One important measure of a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. The most recent annualized quarterly return on equity for Loomis Federal Savings and Loan Association was -0.67 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $-123,000 on total equity of $18.2 million. The bank reported an annualized return on average assets, or ROA, of -0.17 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.