How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, likely making the bank better able to withstand economic trouble. Obviously, banks that are losing money have less ability to do those things.
On Bankrate's earnings test, Points West Community Bank scored 22 out of a possible 30, exceeding the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one widely used measure of a bank's earnings. Points West Community Bank's most recent annualized quarterly return on equity was 12.65 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $4.6 million on total equity of $35.7 million. The bank had an annualized return on average assets, or ROA, of 1.28 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.