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 more resilient in tough times. However, banks that are losing money have less ability to do those things.
Peoples Savings Bank scored 16 out of a possible 30 on Bankrate's test of earnings, exceeding the national average of 15.12.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. The most recent annualized quarterly return on equity for Peoples Savings Bank was 7.52 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $316,000 on total equity of $4.2 million. The bank had an annualized return on average assets, or ROA, of 0.87 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.