How profitable a bank is affects its long-term survivability. A bank can retain its earnings, increasing its capital buffer, or use them to deal with problematic loans, potentially making the bank better able to withstand financial trouble. Losses, on the other hand, diminish a bank's ability to do those things.
On Bankrate's earnings test, Home National Bank scored 12 out of a possible 30, falling short of the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one important measure of a bank's earnings. Home National Bank's most recent annualized quarterly return on equity was 5.56 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $482,000 on total equity of $8.6 million. The bank had an annualized return on average assets, or ROA, of 0.80 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.