How profitable a bank is has an effect on its long-term survivability. Earnings may be retained by the bank, expanding its capital cushion, or be used to deal with problematic loans, potentially making the bank better able to withstand financial shocks. However, banks that are losing money are less able to do those things.
Heritage Community Bank scored 20 out of a possible 30 on Bankrate's test of earnings, exceeding the national average of 15.12.
One key way to measure a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by the total amount of equity. The most recent annualized quarterly return on equity for Heritage Community Bank was 11.11 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $958,000 on total equity of $9.2 million. The bank reported an annualized return on average assets, or ROA, of 1.00 percent, right at the level deemed satisfactory in accordance with industry standards, and equal to the average for U.S. banks of 1.00 percent.