How profitable a bank is affects its safety and soundness. Earnings may be retained by the bank, expanding its capital cushion, or be used to address problematic loans, likely making the bank better prepared to withstand financial shocks. Banks that are losing money, however, have less ability to do those things.
The Pleasants County Bank scored 4 out of a possible 30 on Bankrate's earnings test, falling short of the national average of 15.12.
One key way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. The Pleasants County Bank's most recent annualized quarterly return on equity was 1.32 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $90,000 on total equity of $6.7 million. The bank had an annualized return on average assets, or ROA, of 0.14 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.