How profitable a bank is affects its long-term survivability. A bank can retain its earnings, giving a boost to its capital cushion, or use them to address problematic loans, likely making the bank better able to withstand economic shocks. Losses, on the other hand, lessen a bank's ability to do those things.
On Bankrate's test of earnings, California United Bank scored 20 out of a possible 30, exceeding the national average of 16.52.
Return on equity, calculated by dividing net income (essentially, profit) by the total amount of equity, is one important way to measure a bank's earnings. California United Bank's most recent annualized quarterly return on equity was 10.46 percent, above the national average of 9.28 percent.
The bank reported net income of $18.3 million on total equity of $360.8 million for the twelve months ended June 30, 2017. The bank had an annualized return on average assets, or ROA, of 1.20 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.