How profitable a bank is has an effect on its long-term survivability. Earnings can be retained by the bank, increasing its capital buffer, or be used to deal with problematic loans, potentially making the bank better prepared to withstand economic trouble. However, banks that are losing money are less able to do those things.
Putnam County Bank scored 4 out of a possible 30 on Bankrate's earnings test, below the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one important way to measure a bank's earnings. Putnam County Bank's most recent annualized quarterly return on equity was 1.28 percent, below the national average of 8.10 percent.
The bank reported net income of $1.1 million on total equity of $87.9 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.18 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.