How profitable a bank is has an effect on its safety and soundness. Earnings can be retained by the bank, boosting its capital buffer, or be used to address problematic loans, potentially making the bank more resilient in times of trouble. Conversely, losses reduce a bank's ability to do those things.
Planters Bank & Trust Company outperformed the average on Bankrate's test of earnings, achieving a score of 18 out of a possible 30.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one widely used measure of a bank's earnings. Planters Bank & Trust Company's most recent annualized quarterly return on equity was 9.55 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $9.8 million on total equity of $101.4 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.