A bank's earnings performance has an effect on its safety and soundness. A bank can retain its earnings, boosting its capital cushion, or use them to address problematic loans, likely making the bank better prepared to withstand financial trouble. Obviously, banks that are losing money have less ability to do those things.
Bank of Hazlehurst fell behind the national average on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one key measure of a bank's earnings. Bank of Hazlehurst's most recent annualized quarterly return on equity was -8.96 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $-1.4 million on total equity of $15.5 million. The bank reported an annualized return on average assets, or ROA, of -1.07 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.