How profitable a bank is affects its safety and soundness. Earnings may be retained by the bank, expanding its capital buffer, or be used to deal with problematic loans, likely making the bank more resilient in tough times. Losses, on the other hand, lessen a bank's ability to do those things.
Peoples Bank exceeded the national average on Bankrate's earnings test, achieving a score of 18 out of a possible 30.
One widely used way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. Peoples Bank's most recent annualized quarterly return on equity was 8.56 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $11.1 million on total equity of $133.8 million. The bank experienced an annualized return on average assets, or ROA, of 1.01 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.