How profitable a bank is affects its safety and soundness. A bank can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, potentially making the bank more resilient in times of trouble. Banks that are losing money, however, are less able to do those things.
Farmers & Traders Bank of Campton did above-average on Bankrate's earnings test, achieving a score of 16 out of a possible 30.
One important measure of a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. Farmers & Traders Bank of Campton's most recent annualized quarterly return on equity was 7.10 percent, below the national average of 8.10 percent.
The bank reported net income of $379,000 on total equity of $5.4 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.78 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.