How profitable a bank is affects its safety and soundness. Earnings can be retained by the bank, boosting its capital cushion, or be used to deal with problematic loans, likely making the bank better able to withstand financial trouble. Banks that are losing money, however, have less ability to do those things.
Priority Bank did above-average on Bankrate's earnings test, achieving a score of 24 out of a possible 30.
One widely used measure of a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. Priority Bank's most recent annualized quarterly return on equity was 15.87 percent, above the national average of 8.10 percent.
The bank earned net income of $1.1 million on total equity of $7.1 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.40 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.