A bank's profitability has an effect on its safety and soundness. Earnings can be retained by the bank, expanding its capital cushion, or be used to address problematic loans, likely 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, Tompkins Trust Company scored 26 out of a possible 30, exceeding the national average of 15.12.
One important measure of a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. The most recent annualized quarterly return on equity for Tompkins Trust Company was 17.00 percent, above the national average of 8.10 percent.
The bank earned net income of $21.7 million on total equity of $129.7 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 1.07 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.