How profitable a bank is affects its safety and soundness. A bank can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, likely making the bank more resilient in times of trouble. Losses, on the other hand, reduce a bank's ability to do those things.
On Bankrate's earnings test, The Henry County Bank scored 8 out of a possible 30, below the national average of 15.12.
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 Henry County Bank's most recent annualized quarterly return on equity was 3.73 percent, below the national average of 8.10 percent.
The bank recorded net income of $1.0 million on total equity of $26.6 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.35 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.