A bank's earnings performance affects its long-term survivability. Earnings may be retained by the bank, increasing its capital buffer, or be used to address problematic loans, likely making the bank more resilient in times of trouble. Banks that are losing money, however, are less able to do those things.
First State Bank of San Diego outperformed the average on Bankrate's earnings test, achieving a score of 20 out of a possible 30.
One key measure of 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 First State Bank of San Diego was 10.39 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $592,000 on total equity of $5.7 million. The bank reported an annualized return on average assets, or ROA, of 0.96 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.