How profitable a bank is has an effect on its safety and soundness. Earnings can be retained by the bank, expanding its capital buffer, or be used to deal with problematic loans, potentially making the bank better able to withstand economic shocks. However, banks that are losing money have less ability to do those things.
First Security Bank scored 8 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one important way to measure a bank's earnings. First Security Bank's most recent annualized quarterly return on equity was 3.38 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $279,000 on total equity of $8.4 million. The bank reported an annualized return on average assets, or ROA, of 0.34 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.