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 deal with problematic loans, likely making the bank more resilient in times of trouble. However, banks that are losing money are less able to do those things.
Provident State Bank, Inc. scored 12 out of a possible 30 on Bankrate's test of earnings, below the national average of 15.12.
One important measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. Provident State Bank, Inc.'s most recent annualized quarterly return on equity was 6.31 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $2.2 million on total equity of $37.8 million. The bank had an annualized return on average assets, or ROA, of 0.57 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.