A bank's ability to earn money has an effect on its long-term survivability. Earnings can be retained by the bank, boosting its capital cushion, or be used to address problematic loans, likely making the bank better able to withstand economic shocks. Conversely, losses diminish a bank's ability to do those things.
First Security Bank - Canby. received above-average marks on Bankrate's earnings test, achieving a score of 20 out of a possible 30.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one widely used measure of a bank's earnings. First Security Bank - Canby.'s most recent annualized quarterly return on equity was 11.70 percent, above the national average of 8.10 percent.
The bank recorded net income of $1.3 million on total equity of $11.0 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.84 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.