How profitable a bank is has an effect on its long-term survivability. Earnings may be retained by the bank, giving a boost to its capital buffer, or be used to deal with problematic loans, potentially making the bank better able to withstand economic shocks. Obviously, banks that are losing money have less ability to do those things.
On Bankrate's earnings test, Palm Beach Community Bank scored 18 out of a possible 30, better than the national average of 16.52.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one important way to measure a bank's earnings. Palm Beach Community Bank's most recent annualized quarterly return on equity was 9.55 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank reported net income of $2.0 million on total equity of $40.6 million. The bank had an annualized return on average assets, or ROA, of 1.16 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.