How profitable a bank is affects its long-term survivability. Earnings may be retained by the bank, boosting its capital cushion, or be used to deal with problematic loans, potentially making the bank more resilient in tough times. Losses, on the other hand, lessen a bank's ability to do those things.
Peoples Bank and Trust Company of Clinton County scored 16 out of a possible 30 on Bankrate's earnings test, beating out the national average of 15.12.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. Peoples Bank and Trust Company of Clinton County's most recent annualized quarterly return on equity was 7.27 percent, below the national average of 8.10 percent.
The bank earned net income of $237,000 on total equity of $3.4 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.67 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.