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 cushion, or be used to address problematic loans, potentially making the bank more resilient in tough times. Banks that are losing money, however, have less ability to do those things.
Harvest Bank outperformed the average on Bankrate's earnings test, achieving a score of 26 out of a possible 30.
One key way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. The most recent annualized quarterly return on equity for Harvest Bank was 16.68 percent, above the national average of 8.10 percent.
The bank reported net income of $2.1 million on total equity of $12.9 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.55 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.