How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, giving a boost to its capital buffer, or use them to address problematic loans, potentially making the bank more resilient in tough times. Obviously, banks that are losing money have less ability to do those things.
Prudential Bank & Trust, FSB scored 30 out of a possible 30 on Bankrate's earnings test, beating the national average of 15.12.
One widely used way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. Prudential Bank & Trust, FSB's most recent annualized quarterly return on equity was 22.16 percent, above the national average of 8.10 percent.
The bank recorded net income of $4.1 million on total equity of $18.1 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 19.20 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.