A bank's profitability affects its long-term survivability. A bank can retain its earnings, expanding its capital cushion, or use them to deal with problematic loans, potentially making the bank better able to withstand economic trouble. Obviously, banks that are losing money have less ability to do those things.
HNB National Bank scored 26 out of a possible 30 on Bankrate's test of earnings, beating the national average of 15.12.
One important measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. HNB National Bank's most recent annualized quarterly return on equity was 18.67 percent, above the national average of 8.10 percent.
The bank reported net income of $10.7 million on total equity of $60.6 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 2.26 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.