How profitable a bank is affects its long-term survivability. A bank can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, potentially making the bank better prepared to withstand economic trouble. Conversely, losses reduce a bank's ability to do those things.
On Bankrate's test of earnings, First Security Bank of Malta scored 14 out of a possible 30, failing to reach the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. The most recent annualized quarterly return on equity for First Security Bank of Malta was 6.79 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $253,000 on total equity of $3.7 million. The bank had an annualized return on average assets, or ROA, of 0.71 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.