How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, likely making the bank more resilient in times of trouble. Conversely, losses diminish a bank's ability to do those things.
On Bankrate's test of earnings, Palmetto State Bank scored 18 out of a possible 30, beating 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, essentially) by the total amount of equity. The most recent annualized quarterly return on equity for Palmetto State Bank was 9.06 percent, above the national average of 8.10 percent.
The bank earned net income of $7.5 million on total equity of $86.1 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.36 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.