A bank's profitability affects its long-term survivability. Earnings may be retained by the bank, boosting its capital cushion, or be used to address problematic loans, potentially making the bank more resilient in tough times. Losses, on the other hand, diminish a bank's ability to do those things.
On Bankrate's test of earnings, Security Bank scored 22 out of a possible 30, beating the national average of 16.52.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by the total amount of equity. Security Bank's most recent annualized quarterly return on equity was 13.20 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank earned net income of $273,000 on total equity of $4.0 million. The bank reported an annualized return on average assets, or ROA, of 1.10 percent, above the 1 percent deemed satisfactory in accordance with industry standards, but below the average for U.S. banks of 1.14 percent.