How profitable a bank is affects its long-term survivability. Earnings can be retained by the bank, increasing its capital cushion, or be used to address problematic loans, potentially making the bank better able to withstand financial trouble. However, banks that are losing money have less ability to do those things.
On Bankrate's test of earnings, Peoples Savings Bank of Rhineland scored 18 out of a possible 30, exceeding the national average of 15.12.
One key way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. Peoples Savings Bank of Rhineland's most recent annualized quarterly return on equity was 8.19 percent, above the national average of 8.10 percent.
The bank earned net income of $1.7 million on total equity of $21.6 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.72 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.