How profitable a bank is affects its safety and soundness. Earnings can be retained by the bank, expanding its capital cushion, or be used to deal with problematic loans, potentially making the bank better able to withstand economic trouble. Obviously, banks that are losing money are less able to do those things.
On Bankrate's test of earnings, Yakima Federal Savings and Loan Association scored 8 out of a possible 30, falling short of the national average of 15.12.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one important measure of a bank's earnings. The most recent annualized quarterly return on equity for Yakima Federal Savings and Loan Association was 3.52 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $14.6 million on total equity of $422.7 million. The bank had an annualized return on average assets, or ROA, of 0.81 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.