A bank's profitability has an effect on its long-term survivability. Earnings may be retained by the bank, expanding its capital cushion, or be used to deal with problematic loans, potentially making the bank better able to withstand financial shocks. Banks that are losing money, however, have less ability to do those things.
Bank of Southern California, N.A. fell behind the national average on Bankrate's test of earnings, achieving a score of 16 out of a possible 30.
One widely used way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. The most recent annualized quarterly return on equity for Bank of Southern California, N.A. was 7.60 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank earned net income of $1.7 million on total equity of $47.5 million. The bank had an annualized return on average assets, or ROA, of 0.81 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.