How profitable a bank is has an effect on its safety and soundness. Earnings may be retained by the bank, giving a boost to its capital buffer, or be used to address problematic loans, likely making the bank better prepared to withstand financial shocks. Losses, on the other hand, diminish a bank's ability to do those things.
PCSB Bank scored 16 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 16.52.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. The most recent annualized quarterly return on equity for PCSB Bank was 7.94 percent, below the national average of 9.28 percent.
The bank recorded net income of $940,000 on total equity of $24.4 million for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 0.84 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.