How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, potentially making the bank better able to withstand financial trouble. However, banks that are losing money have less ability to do those things.
The Bank of Hemet exceeded the national average on Bankrate's earnings test, achieving a score of 30 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 the total amount of equity. The most recent annualized quarterly return on equity for The Bank of Hemet was 23.51 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $15.4 million on total equity of $67.2 million. The bank experienced an annualized return on average assets, or ROA, of 2.28 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.