A bank's profitability has an effect on its long-term survivability. Earnings can be retained by the bank, increasing its capital cushion, or be used to deal with problematic loans, potentially making the bank better prepared to withstand economic trouble. Losses, on the other hand, take away from a bank's ability to do those things.
The Peoples Bank scored 18 out of a possible 30 on Bankrate's earnings test, above the national average of 15.12.
One important way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. The Peoples Bank's most recent annualized quarterly return on equity was 8.25 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $1.6 million on total equity of $19.4 million. The bank reported an annualized return on average assets, or ROA, of 0.78 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.