A bank's ability to earn money has an effect on its long-term survivability. A bank can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, potentially making the bank better able to withstand economic trouble. Banks that are losing money, however, are less able to do those things.
Points West Community Bank did above-average on Bankrate's test of earnings, achieving a score of 28 out of a possible 30.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one important way to measure a bank's earnings. The most recent annualized quarterly return on equity for Points West Community Bank was 20.36 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $4.9 million on total equity of $24.5 million. The bank reported an annualized return on average assets, or ROA, of 2.03 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.