How profitable a bank is affects its long-term survivability. A bank can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, potentially making the bank more resilient in tough times. Conversely, losses reduce a bank's ability to do those things.
Ojai Community Bank did below-average on Bankrate's test of earnings, achieving a score of 16 out of a possible 30.
One widely used measure of a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. Ojai Community Bank's most recent annualized quarterly return on equity was 7.84 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank earned net income of $957,000 on total equity of $24.8 million. The bank reported an annualized return on average assets, or ROA, of 0.72 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.