How profitable a bank is affects its safety and soundness. A bank can retain its earnings, giving a boost to its capital buffer, or use them to deal with problematic loans, likely making the bank better able to withstand economic shocks. Obviously, banks that are losing money have less ability to do those things.
Hamlin Bank and Trust Company did above-average on Bankrate's test of earnings, achieving a score of 20 out of a possible 30.
Return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity, is one important way to measure a bank's earnings. Hamlin Bank and Trust Company's most recent annualized quarterly return on equity was 10.45 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $8.8 million on total equity of $87.7 million. The bank had an annualized return on average assets, or ROA, of 1.99 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.