A bank's earnings performance affects its long-term survivability. A bank can retain its earnings, increasing its capital buffer, or use them to address problematic loans, likely making the bank better able to withstand financial shocks. Banks that are losing money, however, are less able to do those things.
First Security Bank-Hendricks scored 22 out of a possible 30 on Bankrate's earnings test, beating out the national average of 15.12.
One important way to measure 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 First Security Bank-Hendricks was 13.81 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $427,000 on total equity of $3.2 million. The bank reported an annualized return on average assets, or ROA, of 1.52 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.