A bank's earnings performance has an effect on its long-term survivability. A bank can retain its earnings, giving a boost to its capital buffer, or use them to deal with problematic loans, likely making the bank better prepared to withstand economic trouble. However, banks that are losing money have less ability to do those things.
Patriot Federal Bank fell behind the national average on Bankrate's test of earnings, achieving a score of 6 out of a possible 30.
One important measure of a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. Patriot Federal Bank's most recent annualized quarterly return on equity was 2.64 percent, below the national average of 9.28 percent.
The bank earned net income of $165,000 on total equity of $12.8 million for the twelve months ended June 30, 2017. The bank had an annualized return on average assets, or ROA, of 0.23 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.