How profitable a bank is has an effect on its long-term survivability. Earnings can be retained by the bank, boosting its capital cushion, or be used to address problematic loans, likely making the bank more resilient in times of trouble. Conversely, losses lessen a bank's ability to do those things.
The Peoples Bank outperformed the average on Bankrate's test of earnings, achieving a score of 20 out of a possible 30.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. The Peoples Bank's most recent annualized quarterly return on equity was 9.93 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $5.0 million on total equity of $50.0 million. The bank experienced an annualized return on average assets, or ROA, of 1.40 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.