How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, potentially making the bank more resilient in times of trouble. However, banks that are losing money have less ability to do those things.
First Secure Community Bank underperformed the average on Bankrate's earnings test, achieving a score of 10 out of a possible 30.
One key measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. First Secure Community Bank's most recent annualized quarterly return on equity was 5.75 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank recorded net income of $652,000 on total equity of $26.3 million. The bank had an annualized return on average assets, or ROA, of 0.56 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.