How profitable a bank is affects its long-term survivability. A bank can retain its earnings, expanding its capital cushion, or use them to deal with problematic loans, likely making the bank better prepared to withstand economic trouble. However, banks that are losing money have less ability to do those things.
On Bankrate's earnings test, Town & Country Bank scored 30 out of a possible 30, beating the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one important way to measure a bank's earnings. Town & Country Bank's most recent annualized quarterly return on equity was 39.30 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $7.1 million on total equity of $16.9 million. The bank experienced an annualized return on average assets, or ROA, of 4.55 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.