How profitable a bank is affects its long-term survivability. A bank can retain its earnings, boosting its capital buffer, or use them to deal with problematic loans, potentially making the bank better prepared to withstand economic shocks. Obviously, banks that are losing money have less ability to do those things.
Prime Security Bank scored 22 out of a possible 30 on Bankrate's earnings test, beating the national average of 15.12.
One key way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. Prime Security Bank's most recent annualized quarterly return on equity was 13.42 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $830,000 on total equity of $6.4 million. The bank experienced an annualized return on average assets, or ROA, of 1.26 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.