A bank's ability to earn money has an effect on its long-term survivability. A bank can retain its earnings, increasing its capital buffer, or use them to address problematic loans, likely making the bank better prepared to withstand financial shocks. Obviously, banks that are losing money have less ability to do those things.
On Bankrate's earnings test, Plaza Bank scored 22 out of a possible 30, beating out the national average of 16.52.
Return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity, is one key measure of a bank's earnings. Plaza Bank's most recent annualized quarterly return on equity was 13.01 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank earned net income of $574,000 on total equity of $9.1 million. The bank experienced an annualized return on average assets, or ROA, of 1.62 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.