A bank's ability to earn money has an effect on its safety and soundness. Earnings may be retained by the bank, boosting its capital cushion, or be used to deal with problematic loans, likely making the bank better able to withstand economic shocks. Obviously, banks that are losing money are less able to do those things.
Perpetual Federal Savings Bank scored 16 out of a possible 30 on Bankrate's earnings test, beating the national average of 15.12.
One widely used way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. Perpetual Federal Savings Bank's most recent annualized quarterly return on equity was 7.50 percent, below the national average of 8.10 percent.
The bank reported net income of $5.2 million on total equity of $70.3 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 1.32 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.