A bank's ability to earn money has an effect on its safety and soundness. Earnings can be retained by the bank, increasing its capital buffer, or be used to deal with problematic loans, potentially making the bank more resilient in times of trouble. Banks that are losing money, however, have less ability to do those things.
On Bankrate's test of earnings, Patriot Bank scored 16 out of a possible 30, failing to reach the national average of 16.52.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. The most recent annualized quarterly return on equity for Patriot Bank was 7.35 percent, below the national average of 9.28 percent.
The bank earned net income of $709,000 on total equity of $19.7 million for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 0.91 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.