A bank's earnings performance has an effect on its safety and soundness. A bank can retain its earnings, increasing its capital buffer, or use them to deal with problematic loans, likely making the bank better able to withstand financial shocks. Obviously, banks that are losing money are less able to do those things.
Hillsboro Bank scored 20 out of a possible 30 on Bankrate's earnings test, better 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. The most recent annualized quarterly return on equity for Hillsboro Bank was 11.58 percent, above the national average of 8.10 percent.
The bank recorded net income of $2.1 million on total equity of $18.5 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 1.52 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.