A bank's ability to earn money affects its safety and soundness. Earnings may be retained by the bank, increasing its capital cushion, or be used to deal with 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.
Opus Bank fell behind the national average on Bankrate's earnings test, achieving a score of 10 out of a possible 30.
One important way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. The most recent annualized quarterly return on equity for Opus Bank was 4.80 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $47.6 million on total equity of $1.02 billion. The bank reported an annualized return on average assets, or ROA, of 0.62 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.