How profitable a bank is affects its long-term survivability. A bank can retain its earnings, giving a boost to its capital buffer, or use them to address problematic loans, potentially making the bank more resilient in tough times. Obviously, banks that are losing money have less ability to do those things.
Bucks County Bank scored 8 out of a possible 30 on Bankrate's test of earnings, lower than the national average of 16.52.
Return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity, is one important measure of a bank's earnings. The most recent annualized quarterly return on equity for Bucks County Bank was 3.62 percent, below the national average of 9.28 percent.
The bank recorded net income of $399,000 on total equity of $22.3 million for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 0.39 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.