How profitable a bank is has an effect on its safety and soundness. Earnings may be retained by the bank, increasing its capital buffer, or be used to address problematic loans, likely making the bank better able to withstand economic shocks. Banks that are losing money, however, are less able to do those things.
On Bankrate's test of earnings, First Security Bank scored 10 out of a possible 30, lower than the national average of 16.52.
Return on equity, calculated by dividing net income (essentially, profit) by the total amount of equity, is one key measure of a bank's earnings. First Security Bank's most recent annualized quarterly return on equity was 5.02 percent, below the national average of 9.28 percent.
The bank reported net income of $1.4 million on total equity of $56.9 million for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 0.45 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.