How profitable a bank is affects its long-term survivability. Earnings can be retained by the bank, boosting its capital buffer, or be used to deal with problematic loans, likely making the bank better prepared to withstand economic shocks. However, banks that are losing money are less able to do those things.
On Bankrate's earnings test, Peoples Bank of Greensboro scored 26 out of a possible 30, beating out the national average of 15.12.
Return on equity, calculated by dividing net income (essentially, profit) by the total amount of equity, is one important measure of a bank's earnings. The most recent annualized quarterly return on equity for Peoples Bank of Greensboro was 15.97 percent, above the national average of 8.10 percent.
The bank recorded net income of $1.2 million on total equity of $7.5 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 1.31 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.