A bank's profitability has an effect on its safety and soundness. A bank can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, likely making the bank better able to withstand financial shocks. Conversely, losses take away from a bank's ability to do those things.
Glens Falls National Bank and Trust Company scored 20 out of a possible 30 on Bankrate's test of earnings, beating the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity, is one important way to measure a bank's earnings. Glens Falls National Bank and Trust Company's most recent annualized quarterly return on equity was 12.00 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $25.0 million on total equity of $215.2 million. The bank experienced an annualized return on average assets, or ROA, of 1.12 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.