A bank's ability to earn money affects its long-term survivability. A bank can retain its earnings, increasing its capital cushion, or use them to deal with problematic loans, likely making the bank more resilient in tough times. However, banks that are losing money are less able to do those things.
Hillsdale County National Bank scored 20 out of a possible 30 on Bankrate's earnings test, better than the national average of 15.12.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by the total amount of equity. Hillsdale County National Bank's most recent annualized quarterly return on equity was 11.60 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $6.4 million on total equity of $58.3 million. The bank reported an annualized return on average assets, or ROA, of 1.06 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.