How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, potentially making the bank more resilient in tough times. Losses, on the other hand, diminish a bank's ability to do those things.
On Bankrate's test of earnings, Heritage Community Bank scored 10 out of a possible 30, lower than the national average of 15.12.
One key way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. Heritage Community Bank's most recent annualized quarterly return on equity was 4.78 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $542,000 on total equity of $11.4 million. The bank had an annualized return on average assets, or ROA, of 0.47 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.