How profitable a bank is affects its safety and soundness. A bank can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, likely making the bank better able to withstand financial trouble. Losses, on the other hand, diminish a bank's ability to do those things.
PeopleFirst Bank fell short of the national average on Bankrate's test of earnings, achieving a score of 2 out of a possible 30.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by the total amount of equity. The most recent annualized quarterly return on equity for PeopleFirst Bank was 0.06 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $9,000 on total equity of $15.3 million. The bank reported an annualized return on average assets, or ROA, of 0.01 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.