A bank's ability to earn money has an effect on its safety and soundness. A bank can retain its earnings, expanding its capital cushion, or use them to address problematic loans, likely making the bank more resilient in times of trouble. Conversely, losses reduce a bank's ability to do those things.
On Bankrate's test of earnings, Town & Country Bank scored 8 out of a possible 30, less than the national average of 16.52.
Return on equity, calculated by dividing net income (profit, basically) by the total amount of equity, is one important way to measure a bank's earnings. Town & Country Bank's most recent annualized quarterly return on equity was 3.45 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank recorded net income of $244,000 on total equity of $14.5 million. The bank reported an annualized return on average assets, or ROA, of 0.36 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.