A bank's earnings performance has an effect on its safety and soundness. Earnings can be retained by the bank, increasing its capital buffer, or be used to deal with problematic loans, potentially making the bank more resilient in tough times. However, banks that are losing money are less able to do those things.
Peoples Trust & Savings Bank underperformed the average on Bankrate's test of earnings, achieving a score of 2 out of a possible 30.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. Peoples Trust & Savings Bank's most recent annualized quarterly return on equity was 0.83 percent, below the national average of 8.10 percent.
The bank earned net income of $271,000 on total equity of $41.8 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.08 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.