How profitable a bank is affects its long-term survivability. A bank can retain its earnings, giving a boost to its capital buffer, or use them to deal with problematic loans, likely making the bank better prepared to withstand economic shocks. However, banks that are losing money are less able to do those things.
Hamilton State Bank scored 20 out of a possible 30 on Bankrate's earnings test, exceeding the national average of 16.52.
Return on equity, calculated by dividing net income (profit, basically) by the total amount of equity, is one important way to measure a bank's earnings. The most recent annualized quarterly return on equity for Hamilton State Bank was 10.80 percent, above the national average of 9.28 percent.
The bank reported net income of $10.7 million on total equity of $187.7 million for the twelve months ended June 30, 2017. The bank experienced an annualized return on average assets, or ROA, of 1.18 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.