A bank's profitability has an effect on its long-term survivability. Earnings can be retained by the bank, giving a boost to its capital buffer, or be used to address problematic loans, potentially making the bank more resilient in times of trouble. Losses, on the other hand, take away from a bank's ability to do those things.
California First National Bank scored 14 out of a possible 30 on Bankrate's test of earnings, coming in below the national average of 16.52.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by the total amount of equity. The most recent annualized quarterly return on equity for California First National Bank was 6.97 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank earned net income of $4.3 million on total equity of $126.5 million. The bank experienced an annualized return on average assets, or ROA, of 1.12 percent, above the 1 percent deemed satisfactory in accordance with industry standards, but below the average for U.S. banks of 1.14 percent.