How profitable a bank is affects its safety and soundness. Earnings may be retained by the bank, increasing its capital buffer, or be used to deal with problematic loans, likely making the bank better able to withstand financial trouble. Conversely, losses lessen a bank's ability to do those things.
PeopleFirst Bank scored 4 out of a possible 30 on Bankrate's test of earnings, lower than the national average of 16.52.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. PeopleFirst Bank's most recent annualized quarterly return on equity was 1.71 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank reported net income of $131,000 on total equity of $15.5 million. The bank had an annualized return on average assets, or ROA, of 0.24 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.