How profitable a bank is affects its long-term survivability. Earnings can be retained by the bank, giving a boost to its capital cushion, or be used to address problematic loans, likely making the bank more resilient in times of trouble. Losses, on the other hand, reduce a bank's ability to do those things.
Presidio Bank scored 16 out of a possible 30 on Bankrate's test of earnings, falling short of the national average of 16.52.
One key way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. The most recent annualized quarterly return on equity for Presidio Bank was 8.06 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank recorded net income of $2.8 million on total equity of $71.3 million. The bank experienced an annualized return on average assets, or ROA, of 0.77 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.