A bank's profitability affects its long-term survivability. A bank can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, likely making the bank better able to withstand financial trouble. Losses, on the other hand, lessen a bank's ability to do those things.
Hometown Bank, National Association received below-average marks on Bankrate's earnings test, achieving a score of 4 out of a possible 30.
Return on equity, calculated by dividing net income (essentially, profit) by the total amount of equity, is one key measure of a bank's earnings. The most recent annualized quarterly return on equity for Hometown Bank, National Association was 1.28 percent, below the national average of 8.10 percent.
The bank earned net income of $210,000 on total equity of $16.5 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.12 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.