How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, expanding its capital buffer, or use them to deal with problematic loans, likely making the bank more resilient in times of trouble. Banks that are losing money, however, are less able to do those things.
On Bankrate's earnings test, Bank of Hancock County scored 12 out of a possible 30, less than the national average of 15.12.
One important way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. Bank of Hancock County's most recent annualized quarterly return on equity was 5.12 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $811,000 on total equity of $14.8 million. The bank experienced an annualized return on average assets, or ROA, of 0.97 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.