How profitable a bank is affects its safety and soundness. A bank can retain its earnings, giving a boost to its capital cushion, or use them to address problematic loans, potentially making the bank more resilient in tough times. Losses, on the other hand, reduce a bank's ability to do those things.
On Bankrate's earnings test, The Putnam County National Bank of Carmel scored 0 out of a possible 30, less than the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one key measure of a bank's earnings. The most recent annualized quarterly return on equity for The Putnam County National Bank of Carmel was -2.74 percent, below the national average of 8.10 percent.
The bank recorded net income of $-940,000 on total equity of $33.6 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of -0.58 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.