A bank's ability to earn money affects its long-term survivability. Earnings can be retained by the bank, expanding its capital cushion, or be used to deal with problematic loans, likely making the bank better able to withstand economic shocks. Banks that are losing money, however, are less able to do those things.
Hamilton Bank fell short of 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 the total amount of equity, is one widely used measure of a bank's earnings. Hamilton Bank's most recent annualized quarterly return on equity was -3.89 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $-2.0 million on total equity of $51.2 million. The bank experienced an annualized return on average assets, or ROA, of -0.40 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.