How profitable a bank is affects its long-term survivability. Earnings may be retained by the bank, increasing its capital cushion, or be used to address problematic loans, likely making the bank more resilient in times of trouble. Conversely, losses take away from a bank's ability to do those things.
Pacific West Bank received below-average marks on Bankrate's earnings test, achieving a score of 0 out of a possible 30.
One important measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. The most recent annualized quarterly return on equity for Pacific West Bank was -3.65 percent, below the national average of 8.10 percent.
The bank reported net income of $-345,000 on total equity of $9.1 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of -0.51 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.