How profitable a bank is affects its safety and soundness. A bank can retain its earnings, giving a boost to its capital cushion, or use them to address problematic loans, potentially making the bank better able to withstand financial shocks. Losses, on the other hand, take away from a bank's ability to do those things.
On Bankrate's earnings test, Pacific Crest Savings Bank scored 24 out of a possible 30, better than the national average of 15.12.
One key way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. Pacific Crest Savings Bank's most recent annualized quarterly return on equity was 14.70 percent, above the national average of 8.10 percent.
The bank reported net income of $3.3 million on total equity of $22.5 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 1.52 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.