How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, expanding its capital buffer, or use them to address problematic loans, potentially making the bank more resilient in tough times. Losses, on the other hand, diminish a bank's ability to do those things.
On Bankrate's earnings test, Park Ridge Community Bank scored 26 out of a possible 30, beating out the national average of 15.12.
Return on equity, calculated by dividing net income (essentially, profit) by the total amount of equity, is one key measure of a bank's earnings. Park Ridge Community Bank's most recent annualized quarterly return on equity was 17.39 percent, above the national average of 8.10 percent.
The bank earned net income of $6.8 million on total equity of $39.1 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 2.22 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.