A bank's earnings performance affects its long-term survivability. A bank can retain its earnings, boosting its capital cushion, or use them to address problematic loans, potentially making the bank more resilient in times of trouble. Conversely, losses diminish a bank's ability to do those things.
Primebank did above-average on Bankrate's test of earnings, achieving a score of 24 out of a possible 30.
Return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity, is one key measure of a bank's earnings. The most recent annualized quarterly return on equity for Primebank was 15.74 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $7.4 million on total equity of $48.8 million. The bank had an annualized return on average assets, or ROA, of 1.83 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.