A bank's profitability has an effect on its long-term survivability. Earnings can be retained by the bank, giving a boost to its capital buffer, or be used to address problematic loans, potentially making the bank better able to withstand economic trouble. Conversely, losses diminish a bank's ability to do those things.
Paradise Bank scored 30 out of a possible 30 on Bankrate's test of earnings, above the national average of 15.12.
One key measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. Paradise Bank's most recent annualized quarterly return on equity was 21.21 percent, above the national average of 8.10 percent.
The bank recorded net income of $7.3 million on total equity of $33.4 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 2.30 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.