How profitable a bank is affects its long-term survivability. A bank can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, potentially making the bank more resilient in tough times. Obviously, banks that are losing money have less ability to do those things.
The Peoples Bank fell behind the national average on Bankrate's earnings test, achieving a score of 0 out of a possible 30.
One widely used measure of a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. The Peoples Bank's most recent annualized quarterly return on equity was -0.94 percent, below the national average of 8.10 percent.
The bank recorded net income of $-55,000 on total equity of $5.6 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of -0.04 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.