How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, potentially making the bank better able to withstand economic trouble. Losses, on the other hand, lessen a bank's ability to do those things.
Midland Federal Savings and Loan Association scored 2 out of a possible 30 on Bankrate's test of earnings, coming in below 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 total equity. Midland Federal Savings and Loan Association's most recent annualized quarterly return on equity was 0.79 percent, below the national average of 8.10 percent.
The bank earned net income of $88,000 on total equity of $11.0 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.07 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.