A bank's earnings performance has an effect on its safety and soundness. Earnings may be retained by the bank, boosting its capital cushion, or be used to deal with problematic loans, potentially making the bank better able to withstand financial trouble. Losses, on the other hand, reduce a bank's ability to do those things.
On Bankrate's test of earnings, First Security Bank scored 22 out of a possible 30, beating out the national average of 15.12.
Return on equity, calculated by dividing net income (essentially, profit) 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 14.15 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $125.0 million on total equity of $957.6 million. The bank had an annualized return on average assets, or ROA, of 2.34 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.