How profitable a bank is affects its safety and soundness. Earnings may be retained by the bank, giving a boost to its capital buffer, or be used to address problematic loans, potentially making the bank more resilient in tough times. However, banks that are losing money are less able to do those things.
H. F. Gehant Banking Co. scored 18 out of a possible 30 on Bankrate's test of earnings, exceeding the national average of 15.12.
One key measure of a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. The most recent annualized quarterly return on equity for H. F. Gehant Banking Co. was 8.71 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $716,000 on total equity of $8.4 million. The bank experienced an annualized return on average assets, or ROA, of 1.27 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.