A bank's profitability affects its safety and soundness. Earnings may be retained by the bank, expanding its capital buffer, or be used to address problematic loans, likely making the bank more resilient in times of trouble. However, banks that are losing money have less ability to do those things.
First Pryority Bank scored 12 out of a possible 30 on Bankrate's earnings test, lower than the national average of 15.12.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. The most recent annualized quarterly return on equity for First Pryority Bank was 5.18 percent, below the national average of 8.10 percent.
The bank earned net income of $953,000 on total equity of $18.9 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.67 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.