A bank's earnings performance affects its long-term survivability. A bank can retain its earnings, boosting its capital buffer, or use them to deal with problematic loans, likely making the bank more resilient in tough times. Conversely, losses reduce a bank's ability to do those things.
Bank of Pensacola fell behind the national average on Bankrate's test of earnings, achieving a score of 2 out of a possible 30.
Return on equity, calculated by dividing net income (profit, basically) by the total amount of equity, is one key measure of a bank's earnings. Bank of Pensacola's most recent annualized quarterly return on equity was 0.71 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $79,000 on total equity of $11.1 million. The bank reported an annualized return on average assets, or ROA, of 0.09 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.