How profitable a bank is affects its safety and soundness. Earnings can be retained by the bank, expanding its capital buffer, or be used to address problematic loans, potentially making the bank better prepared to withstand economic shocks. Banks that are losing money, however, have less ability to do those things.
The First Bank of Greenwich scored 10 out of a possible 30 on Bankrate's test of earnings, falling short of the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. The most recent annualized quarterly return on equity for The First Bank of Greenwich was 4.70 percent, below the national average of 8.10 percent.
The bank reported net income of $1.3 million on total equity of $29.8 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.45 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.