How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, increasing its capital buffer, or use them to deal with problematic loans, likely making the bank better prepared to withstand economic shocks. Losses, on the other hand, reduce a bank's ability to do those things.
Tempo Bank, A Federal Savings Bank did below-average on Bankrate's earnings test, achieving a score of 6 out of a possible 30.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one important way to measure a bank's earnings. Tempo Bank, A Federal Savings Bank's most recent annualized quarterly return on equity was 1.99 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $218,000 on total equity of $10.7 million. The bank experienced an annualized return on average assets, or ROA, of 0.23 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.