A bank's ability to earn money affects its long-term survivability. A bank can retain its earnings, increasing its capital buffer, or use them to deal with problematic loans, likely making the bank better able to withstand economic trouble. However, banks that are losing money have less ability to do those things.
The Hill-Dodge Banking Company scored 0 out of a possible 30 on Bankrate's test of earnings, failing to reach the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by the total amount of equity. The Hill-Dodge Banking Company's most recent annualized quarterly return on equity was -10.58 percent, below the national average of 8.10 percent.
The bank reported net income of $-652,000 on total equity of $5.6 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of -1.57 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.