How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, likely making the bank more resilient in times of trouble. Banks that are losing money, however, are less able to do those things.
Security Federal Savings Bank of McMinnville scored 16 out of a possible 30 on Bankrate's earnings test, exceeding 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. Security Federal Savings Bank of McMinnville's most recent annualized quarterly return on equity was 7.59 percent, below the national average of 8.10 percent.
The bank recorded net income of $1.5 million on total equity of $20.3 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.76 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.