How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, potentially making the bank more resilient in times of trouble. Obviously, banks that are losing money are less able to do those things.
On Bankrate's earnings test, Heartland Bank scored 0 out of a possible 30, coming in below the national average of 16.52.
One widely used measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. Heartland Bank's most recent annualized quarterly return on equity was -168.44 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank reported net income of $-11.8 million on total equity of $8.8 million. The bank experienced an annualized return on average assets, or ROA, of -11.68 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.