How profitable a bank is has an effect on its safety and soundness. Earnings can be retained by the bank, expanding its capital cushion, or be used to deal with problematic loans, likely making the bank better able to withstand financial shocks. Losses, on the other hand, diminish a bank's ability to do those things.
On Bankrate's earnings test, POINTWEST BANK scored 20 out of a possible 30, better than the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one important way to measure a bank's earnings. POINTWEST BANK's most recent annualized quarterly return on equity was 11.12 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $927,000 on total equity of $8.5 million. The bank reported an annualized return on average assets, or ROA, of 0.92 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.