A bank's profitability has an effect on its safety and soundness. A bank can retain its earnings, increasing its capital buffer, or use them to deal with problematic loans, likely making the bank better able to withstand economic shocks. Conversely, losses diminish a bank's ability to do those things.
On Bankrate's test of earnings, Tioga-Franklin Savings Bank scored 8 out of a possible 30, falling short of the national average of 15.12.
Return on equity, calculated by dividing net income (essentially, profit) by the total amount of equity, is one key measure of a bank's earnings. Tioga-Franklin Savings Bank's most recent annualized quarterly return on equity was 3.21 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $151,000 on total equity of $4.8 million. The bank had an annualized return on average assets, or ROA, of 0.40 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.