How profitable a bank is affects its long-term survivability. A bank can retain its earnings, expanding its capital buffer, or use them to address problematic loans, likely making the bank more resilient in tough times. Obviously, banks that are losing money have less ability to do those things.
On Bankrate's earnings test, Pacific Enterprise Bank scored 12 out of a possible 30, coming in below the national average of 15.12.
One key way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. Pacific Enterprise Bank's most recent annualized quarterly return on equity was 5.57 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $3.0 million on total equity of $52.9 million. The bank had an annualized return on average assets, or ROA, of 0.59 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.