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 address problematic loans, likely making the bank better able to withstand financial shocks. Banks that are losing money, however, have less ability to do those things.
PriorityOne Bank beat the national average on Bankrate's test of earnings, achieving a score of 24 out of a possible 30.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. The most recent annualized quarterly return on equity for PriorityOne Bank was 15.99 percent, above the national average of 8.10 percent.
The bank earned net income of $10.8 million on total equity of $69.9 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 1.76 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.