A bank's ability to earn money affects its safety and soundness. Earnings can be retained by the bank, increasing its capital buffer, or be used to deal with problematic loans, likely making the bank more resilient in times of trouble. However, banks that are losing money are less able to do those things.
On Bankrate's earnings test, The Home Savings and Loan Company of Kenton, Ohio scored 6 out of a possible 30, less than the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity, is one key measure of a bank's earnings. The most recent annualized quarterly return on equity for The Home Savings and Loan Company of Kenton, Ohio was 2.28 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $742,000 on total equity of $32.9 million. The bank reported an annualized return on average assets, or ROA, of 0.65 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.