A bank's profitability has an effect on its safety and soundness. A bank can retain its earnings, giving a boost to its capital buffer, or use them to deal with problematic loans, potentially making the bank better prepared to withstand economic trouble. Obviously, banks that are losing money are less able to do those things.
Security State Bank of Oklee did above-average on Bankrate's test of earnings, achieving a score of 16 out of a possible 30.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. Security State Bank of Oklee's most recent annualized quarterly return on equity was 7.36 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $394,000 on total equity of $5.6 million. The bank had an annualized return on average assets, or ROA, of 1.22 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.