How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, likely making the bank more resilient in times of trouble. Obviously, banks that are losing money are less able to do those things.
Planters and Citizens Bank scored 6 out of a possible 30 on Bankrate's earnings test, falling short of the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. The most recent annualized quarterly return on equity for Planters and Citizens Bank was 2.13 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $229,000 on total equity of $10.7 million. The bank reported an annualized return on average assets, or ROA, of 0.20 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.