A bank's earnings performance has an effect on 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 more resilient in times of trouble. Banks that are losing money, however, are less able to do those things.
Hinsdale Bank & Trust Company scored 18 out of a possible 30 on Bankrate's earnings test, beating the national average of 16.52.
One key measure of a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. Hinsdale Bank & Trust Company's most recent annualized quarterly return on equity was 9.22 percent, below the national average of 9.28 percent.
The bank recorded net income of $12.9 million on total equity of $281.3 million for the twelve months ended June 30, 2017. The bank had an annualized return on average assets, or ROA, of 1.23 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.