A bank's earnings performance affects its safety and soundness. A bank can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, potentially making the bank better prepared to withstand economic trouble. Banks that are losing money, however, are less able to do those things.
On Bankrate's test of earnings, The Park Bank scored 14 out of a possible 30, less than 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 the total amount of equity. The Park Bank's most recent annualized quarterly return on equity was 6.76 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $6.0 million on total equity of $91.2 million. The bank reported an annualized return on average assets, or ROA, of 0.71 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.