How profitable a bank is 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 address problematic loans, potentially making the bank better prepared to withstand financial trouble. Banks that are losing money, however, are less able to do those things.
On Bankrate's test of earnings, EH National Bank scored 18 out of a possible 30, exceeding the national average of 16.52.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. EH National Bank's most recent annualized quarterly return on equity was 9.07 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank recorded net income of $1.4 million on total equity of $30.9 million. The bank experienced an annualized return on average assets, or ROA, of 1.16 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.