How profitable a bank is affects its safety and soundness. Earnings may be retained by the bank, expanding its capital cushion, or be used to deal with problematic loans, potentially making the bank better prepared to withstand economic trouble. Conversely, losses reduce a bank's ability to do those things.
Horry County State Bank underperformed the average on Bankrate's earnings test, achieving a score of 10 out of a possible 30.
One widely used measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. Horry County State Bank's most recent annualized quarterly return on equity was 4.25 percent, below the national average of 9.28 percent.
The bank earned net income of $754,000 on total equity of $36.8 million for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 0.39 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.