A bank's earnings performance affects its safety and soundness. A bank can retain its earnings, expanding its capital buffer, or use them to address problematic loans, likely making the bank better able to withstand financial shocks. Conversely, losses take away from a bank's ability to do those things.
On Bankrate's earnings test, Peoples Trust Company of St. Albans scored 10 out of a possible 30, less than the national average of 15.12.
One important way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. Peoples Trust Company of St. Albans's most recent annualized quarterly return on equity was 4.67 percent, below the national average of 8.10 percent.
The bank reported net income of $1.5 million on total equity of $31.8 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.57 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.