How profitable a bank is affects its long-term survivability. A bank can retain its earnings, expanding its capital cushion, or use them to deal with problematic loans, potentially making the bank better able to withstand economic shocks. Conversely, losses diminish a bank's ability to do those things.
On Bankrate's test of earnings, The Highlands Bank scored 20 out of a possible 30, above the national average of 16.52.
One widely used way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by the total amount of equity. The most recent annualized quarterly return on equity for The Highlands Bank was 11.56 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank earned net income of $1.1 million on total equity of $19.3 million. The bank experienced an annualized return on average assets, or ROA, of 1.44 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.