How profitable a bank is affects its safety and soundness. Earnings may be retained by the bank, boosting its capital cushion, or be used to address problematic loans, likely making the bank better able to withstand financial trouble. Obviously, banks that are losing money have less ability to do those things.
Bank of Hazelton scored 18 out of a possible 30 on Bankrate's earnings test, above the national average of 15.12.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. Bank of Hazelton's most recent annualized quarterly return on equity was 9.01 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $402,000 on total equity of $4.6 million. The bank experienced an annualized return on average assets, or ROA, of 0.79 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.