How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, potentially making the bank more resilient in tough times. Conversely, losses lessen a bank's ability to do those things.
The Bank of Holyrood received above-average marks on Bankrate's test of earnings, achieving a score of 16 out of a possible 30.
One widely used way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. The Bank of Holyrood's most recent annualized quarterly return on equity was 7.32 percent, below the national average of 8.10 percent.
The bank earned net income of $627,000 on total equity of $8.4 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.01 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.