A bank's profitability has an effect on its safety and soundness. A bank can retain its earnings, boosting its capital cushion, or use them to deal with problematic loans, likely making the bank better prepared to withstand economic trouble. However, banks that are losing money are less able to do those things.
On Bankrate's test of earnings, Progress Bank and Trust scored 12 out of a possible 30, falling short of the national average of 15.12.
One widely used way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. The most recent annualized quarterly return on equity for Progress Bank and Trust was 6.97 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $7.0 million on total equity of $125.6 million. The bank had an annualized return on average assets, or ROA, of 0.78 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.