A bank's ability to earn money affects its long-term survivability. A bank can retain its earnings, expanding its capital cushion, or use them to address problematic loans, potentially making the bank more resilient in tough times. Losses, on the other hand, lessen a bank's ability to do those things.
Chester County Bank scored 14 out of a possible 30 on Bankrate's test of earnings, lower than the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. Chester County Bank's most recent annualized quarterly return on equity was 6.50 percent, below the national average of 8.10 percent.
The bank reported net income of $487,000 on total equity of $7.5 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.69 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.