A bank's profitability has an effect on its safety and soundness. A bank can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, likely making the bank better able to withstand financial trouble. However, banks that are losing money are less able to do those things.
On Bankrate's test of earnings, Patriot Bank scored 30 out of a possible 30, exceeding the national average of 16.52.
Return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity, is one important way to measure a bank's earnings. Patriot Bank's most recent annualized quarterly return on equity was 21.49 percent, above the national average of 9.28 percent.
The bank earned net income of $3.7 million on total equity of $34.9 million for the twelve months ended June 30, 2017. The bank experienced an annualized return on average assets, or ROA, of 2.29 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.