A bank's earnings performance has an effect on its long-term survivability. Earnings may be retained by the bank, boosting its capital cushion, or be used to address problematic loans, potentially making the bank better able to withstand financial shocks. Conversely, losses take away from a bank's ability to do those things.
On Bankrate's test of earnings, PrinsBank scored 30 out of a possible 30, better than the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one important way to measure a bank's earnings. PrinsBank's most recent annualized quarterly return on equity was 25.87 percent, above the national average of 8.10 percent.
The bank recorded net income of $4.9 million on total equity of $20.2 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 3.73 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.