How profitable a bank is has an effect on its safety and soundness. Earnings may be retained by the bank, giving a boost to its capital cushion, or be used to deal with problematic loans, likely making the bank better able to withstand financial trouble. Losses, on the other hand, lessen a bank's ability to do those things.
On Bankrate's earnings test, Malaga Bank F.S.B. scored 20 out of a possible 30, beating out the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one important way to measure a bank's earnings. Malaga Bank F.S.B.'s most recent annualized quarterly return on equity was 10.50 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $13.9 million on total equity of $136.8 million. The bank experienced an annualized return on average assets, or ROA, of 1.37 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.