A bank's profitability affects its long-term survivability. A bank can retain its earnings, increasing its capital buffer, or use them to address problematic loans, potentially making the bank better able to withstand economic trouble. Conversely, losses lessen a bank's ability to do those things.
Rockland Trust Company exceeded the national average on Bankrate's earnings test, achieving a score of 18 out of a possible 30.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. Rockland Trust Company's most recent annualized quarterly return on equity was 9.20 percent, above the national average of 8.10 percent.
The bank recorded net income of $89.6 million on total equity of $1.01 billion for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 1.13 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.