How profitable a bank is affects its safety and soundness. A bank can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, likely making the bank better able to withstand financial trouble. However, banks that are losing money are less able to do those things.
On Bankrate's test of earnings, PeoplesTrust Bank scored 18 out of a possible 30, exceeding the national average of 15.12.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. PeoplesTrust Bank's most recent annualized quarterly return on equity was 8.66 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $889,000 on total equity of $10.6 million. The bank had an annualized return on average assets, or ROA, of 0.94 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.