How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, expanding its capital cushion, or use them to address problematic loans, likely making the bank better able to withstand financial trouble. Banks that are losing money, however, have less ability to do those things.
Plaza Bank scored 20 out of a possible 30 on Bankrate's earnings test, exceeding the national average of 16.52.
One widely used measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. The most recent annualized quarterly return on equity for Plaza Bank was 11.39 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank earned net income of $7.9 million on total equity of $141.0 million. The bank had an annualized return on average assets, or ROA, of 1.29 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.