How profitable a bank is has an effect on 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 more resilient in tough times. However, banks that are losing money are less able to do those things.
On Bankrate's test of earnings, The First National Bank of Groton scored 18 out of a possible 30, beating out 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. The First National Bank of Groton's most recent annualized quarterly return on equity was 9.02 percent, above the national average of 8.10 percent.
The bank reported net income of $2.1 million on total equity of $23.3 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.18 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.