A bank's earnings performance affects its safety and soundness. A bank can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, potentially making the bank better prepared to withstand financial shocks. Obviously, banks that are losing money are less able to do those things.
On Bankrate's test of earnings, The Harrison County Bank scored 18 out of a possible 30, exceeding the national average of 15.12.
One important measure of a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. The Harrison County Bank's most recent annualized quarterly return on equity was 8.24 percent, above the national average of 8.10 percent.
The bank recorded net income of $869,000 on total equity of $10.7 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.79 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.