A bank's profitability has an effect on its safety and soundness. Earnings can be retained by the bank, giving a boost to its capital cushion, or be used to address problematic loans, potentially making the bank more resilient in times of trouble. Obviously, banks that are losing money have less ability to do those things.
The Liberty Savings Association, FSA did below-average on Bankrate's test of earnings, achieving a score of 2 out of a possible 30.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. The Liberty Savings Association, FSA's most recent annualized quarterly return on equity was 0.70 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $45,000 on total equity of $6.5 million. The bank had an annualized return on average assets, or ROA, of 0.13 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.