How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, boosting its capital buffer, or use them to address problematic loans, likely making the bank better prepared to withstand economic shocks. Banks that are losing money, however, are less able to do those things.
Town & Country Bank and Trust Company scored 4 out of a possible 30 on Bankrate's earnings test, less than the national average of 15.12.
One key 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 Town & Country Bank and Trust Company was 1.73 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $641,000 on total equity of $35.6 million. The bank reported an annualized return on average assets, or ROA, of 0.21 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.