A bank's profitability has an effect on its long-term survivability. Earnings can be retained by the bank, giving a boost to its capital cushion, or be used to deal with problematic loans, potentially making the bank better able to withstand economic trouble. Conversely, losses take away from a bank's ability to do those things.
Medina Savings and Loan Association fell short of the national average on Bankrate's test of earnings, achieving a score of 2 out of a possible 30.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one key measure of a bank's earnings. Medina Savings and Loan Association's most recent annualized quarterly return on equity was 0.95 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $34,000 on total equity of $3.7 million. The bank reported an annualized return on average assets, or ROA, of 0.06 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.