How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, expanding its capital buffer, or use them to address problematic loans, likely making the bank better able to withstand economic trouble. However, banks that are losing money have less ability to do those things.
On Bankrate's test of earnings, Provident Bank scored 16 out of a possible 30, lower than the national average of 16.52.
Return on equity, calculated by dividing net income (profit, basically) by the total amount of equity, is one key measure of a bank's earnings. The most recent annualized quarterly return on equity for Provident Bank was 7.91 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank recorded net income of $47.6 million on total equity of $1.23 billion. The bank had an annualized return on average assets, or ROA, of 1.00 percent, right at the level deemed satisfactory in accordance with industry standards, but below the average for U.S. banks of 1.14 percent.