A bank's earnings performance has an effect on its long-term survivability. A bank can retain its earnings, expanding its capital cushion, or use them to deal with problematic loans, likely making the bank more resilient in tough times. Conversely, losses diminish a bank's ability to do those things.
On Bankrate's test of earnings, Park Bank scored 8 out of a possible 30, below the national average of 15.12.
One widely used way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. Park Bank's most recent annualized quarterly return on equity was 3.92 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $324,000 on total equity of $8.4 million. The bank reported an annualized return on average assets, or ROA, of 0.59 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.