How profitable a bank is affects its long-term survivability. A bank can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, potentially making the bank more resilient in tough times. However, banks that are losing money are less able to do those things.
Pathfinder Bank fell short of the national average on Bankrate's earnings test, achieving a score of 14 out of a possible 30.
One key way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. Pathfinder Bank's most recent annualized quarterly return on equity was 6.20 percent, below the national average of 8.10 percent.
The bank recorded net income of $4.3 million on total equity of $71.9 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.53 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.