A bank's earnings performance has an effect on its long-term survivability. Earnings may be retained by the bank, increasing its capital cushion, or be used to deal with problematic loans, potentially making the bank more resilient in times of trouble. Banks that are losing money, however, are less able to do those things.
Third Federal Savings and Loan Association of Cleveland fell short of the national average on Bankrate's test of earnings, achieving a score of 14 out of a possible 30.
Return on equity, calculated by dividing net income (profit, basically) by the total amount of equity, is one widely used measure of a bank's earnings. Third Federal Savings and Loan Association of Cleveland's most recent annualized quarterly return on equity was 6.13 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $89.4 million on total equity of $1.45 billion. The bank experienced an annualized return on average assets, or ROA, of 0.66 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.