A bank's profitability affects its safety and soundness. Earnings can be retained by the bank, expanding its capital cushion, or be used to address problematic loans, likely making the bank more resilient in times of trouble. However, banks that are losing money are less able to do those things.
Security Savings Bank fell behind the national average on Bankrate's test of earnings, achieving a score of 8 out of a possible 30.
One key way to measure a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. Security Savings Bank's most recent annualized quarterly return on equity was 3.74 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $729,000 on total equity of $19.7 million. The bank reported an annualized return on average assets, or ROA, of 0.39 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.