A bank's profitability has an effect on its safety and soundness. Earnings may be retained by the bank, giving a boost to its capital cushion, or be used to address problematic loans, potentially making the bank better prepared to withstand financial shocks. Banks that are losing money, however, have less ability to do those things.
On Bankrate's test of earnings, Security Bank and Trust Co. scored 12 out of a possible 30, below the national average of 15.12.
One key measure of a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. The most recent annualized quarterly return on equity for Security Bank and Trust Co. was 5.87 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $621,000 on total equity of $10.5 million. The bank had an annualized return on average assets, or ROA, of 1.18 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.