A bank's profitability has an effect on its safety and soundness. A bank can retain its earnings, increasing its capital buffer, or use them to address problematic loans, likely making the bank better able to withstand economic trouble. However, banks that are losing money have less ability to do those things.
Home Bank, National Association fell short of the national average on Bankrate's test of earnings, achieving a score of 14 out of a possible 30.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one important way to measure a bank's earnings. Home Bank, National Association's most recent annualized quarterly return on equity was 8.94 percent, above the national average of 8.10 percent.
The bank recorded net income of $17.0 million on total equity of $263.1 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.99 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.