How profitable a bank is affects its safety and soundness. Earnings can be retained by the bank, giving a boost to its capital buffer, or be used to deal with problematic loans, potentially making the bank better able to withstand financial trouble. However, banks that are losing money have less ability to do those things.
First Harrison Bank outperformed the average on Bankrate's earnings test, achieving a score of 18 out of a possible 30.
One key measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. First Harrison Bank's most recent annualized quarterly return on equity was 9.07 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank recorded net income of $3.4 million on total equity of $77.1 million. The bank had an annualized return on average assets, or ROA, of 0.90 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.