A bank's profitability affects its long-term survivability. A bank can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, likely making the bank better able to withstand financial trouble. Obviously, banks that are losing money are less able to do those things.
Hartsburg State Bank scored 18 out of a possible 30 on Bankrate's earnings test, above the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. Hartsburg State Bank's most recent annualized quarterly return on equity was 8.85 percent, above the national average of 8.10 percent.
The bank reported net income of $155,000 on total equity of $1.8 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.94 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.