How profitable a bank is affects its long-term survivability. Earnings can be retained by the bank, giving a boost to its capital cushion, or be used to deal with problematic loans, potentially making the bank more resilient in tough times. Obviously, banks that are losing money have less ability to do those things.
Pacific Commerce Bank scored 16 out of a possible 30 on Bankrate's test of earnings, beating out the national average of 15.12.
One important way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. The most recent annualized quarterly return on equity for Pacific Commerce Bank was 7.45 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $5.0 million on total equity of $69.3 million. The bank had an annualized return on average assets, or ROA, of 0.93 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.