How profitable a bank is affects its safety and soundness. A bank can retain its earnings, increasing its capital cushion, or use them to address problematic loans, likely making the bank more resilient in tough times. Losses, on the other hand, lessen a bank's ability to do those things.
On Bankrate's earnings test, Beach Community Bank scored 0 out of a possible 30, lower than the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one important way to measure a bank's earnings. Beach Community Bank's most recent annualized quarterly return on equity was -25.81 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $-4.3 million on total equity of $14.4 million. The bank reported an annualized return on average assets, or ROA, of -0.86 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.