How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, likely making the bank more resilient in tough times. Banks that are losing money, however, have less ability to do those things.
Holmes County Bank & Trust Company fell behind the national average on Bankrate's earnings test, achieving a score of 10 out of a possible 30.
Return on equity, calculated by dividing net income (essentially, profit) by the total amount of equity, is one important way to measure a bank's earnings. Holmes County Bank & Trust Company's most recent annualized quarterly return on equity was 4.68 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $656,000 on total equity of $13.9 million. The bank experienced an annualized return on average assets, or ROA, of 0.57 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.