A bank's profitability affects its long-term survivability. A bank can retain its earnings, expanding its capital cushion, or use them to address 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.
Phoenixville Federal Bank and Trust did below-average on Bankrate's test of earnings, achieving a score of 2 out of a possible 30.
One widely used way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. Phoenixville Federal Bank and Trust's most recent annualized quarterly return on equity was 0.18 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $92,000 on total equity of $50.5 million. The bank had an annualized return on average assets, or ROA, of 0.02 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.