A bank's profitability affects its long-term survivability. Earnings can be retained by the bank, giving a boost to its capital buffer, or be used to address problematic loans, potentially making the bank better able to withstand economic shocks. Conversely, losses lessen a bank's ability to do those things.
On Bankrate's test of earnings, Peoples National Bank scored 28 out of a possible 30, beating the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one important way to measure a bank's earnings. The most recent annualized quarterly return on equity for Peoples National Bank was 18.35 percent, above the national average of 8.10 percent.
The bank recorded net income of $7.5 million on total equity of $41.7 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 1.88 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.