How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, increasing its capital buffer, or use them to deal with problematic loans, potentially making the bank better able to withstand economic trouble. Obviously, banks that are losing money have less ability to do those things.
Park Bank scored 24 out of a possible 30 on Bankrate's test of earnings, beating out the national average of 15.12.
One important way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. The most recent annualized quarterly return on equity for Park Bank was 14.72 percent, above the national average of 8.10 percent.
The bank reported net income of $14.1 million on total equity of $98.7 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 1.56 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.