How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, likely making the bank better able to withstand economic shocks. Banks that are losing money, however, have less ability to do those things.
Premier Community Bank did above-average on Bankrate's test of earnings, achieving a score of 16 out of a possible 30.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. Premier Community Bank's most recent annualized quarterly return on equity was 7.78 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $3.6 million on total equity of $47.5 million. The bank experienced an annualized return on average assets, or ROA, of 0.91 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.