A bank's earnings performance has an effect on its safety and soundness. Earnings can be retained by the bank, increasing its capital buffer, or be used to address 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.
Westmoreland Federal Savings and Loan Association scored 2 out of a possible 30 on Bankrate's test of earnings, lower than the national average of 15.12.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by the total amount of equity. The most recent annualized quarterly return on equity for Westmoreland Federal Savings and Loan Association was 0.94 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $393,000 on total equity of $41.8 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.