A bank's profitability has an effect on its long-term survivability. Earnings may be retained by the bank, boosting its capital cushion, or be used to address problematic loans, likely making the bank better prepared to withstand economic shocks. Losses, on the other hand, lessen a bank's ability to do those things.
On Bankrate's earnings test, Premier Community Bank of Florida scored 4 out of a possible 30, less than the national average of 16.52.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one important way to measure a bank's earnings. Premier Community Bank of Florida's most recent annualized quarterly return on equity was 1.83 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank reported net income of $233,000 on total equity of $26.0 million. The bank reported an annualized return on average assets, or ROA, of 0.28 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.