How profitable a bank is affects its safety and soundness. Earnings can be retained by the bank, expanding its capital buffer, or be used to address problematic loans, potentially making the bank better prepared to withstand economic trouble. Banks that are losing money, however, are less able to do those things.
Peoples Community Bank scored 26 out of a possible 30 on Bankrate's test of earnings, beating the national average of 15.12.
One key way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. The most recent annualized quarterly return on equity for Peoples Community Bank was 18.63 percent, above the national average of 8.10 percent.
The bank recorded net income of $13.1 million on total equity of $74.4 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 2.98 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.