You could find a better piece of wood for sure, but hickory is tough stuff and you can damage the back of it more than any other wood and still have a bow. I have taken pieces like that and laid the back straight on the belt sander and sanded it down smooth. If it were mine, I wouldn't bother with trying to chase a ring with hickory. If I were shooting for a medium weight bow of reasonable length, I would sand that back down flat and proceed. This will probably start a hail storm of disagreement, but I have access to lots of hickory and have made several good bows from really second rate boards and staves. It is very durable wood and will take a lot of ring violation on the back. Just my two cents.
PS: Oh, and here is me crawfishing - if it is bug damaged or fungus damaged from laying on the ground - it is doomed.