How profitable a bank is affects its long-term survivability. Earnings can be retained by the bank, increasing its capital buffer, or be used to deal with problematic loans, likely making the bank better able to withstand economic trouble. Obviously, banks that are losing money have less ability to do those things.
Peoples Bank and Trust Company beat the national average on Bankrate's test of earnings, achieving a score of 30 out of a possible 30.
Return on equity, calculated by dividing net income (essentially, profit) by the total amount of equity, is one important way to measure a bank's earnings. The most recent annualized quarterly return on equity for Peoples Bank and Trust Company was 36.54 percent, above the national average of 8.10 percent.
The bank reported net income of $2.1 million on total equity of $6.4 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 6.39 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.