How profitable a bank is affects its safety and soundness. A bank can retain its earnings, boosting its capital buffer, or use them to address problematic loans, likely making the bank better prepared to withstand economic shocks. However, banks that are losing money have less ability to do those things.
Presidio Bank scored 16 out of a possible 30 on Bankrate's earnings test, exceeding the national average of 15.12.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. The most recent annualized quarterly return on equity for Presidio Bank was 7.68 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $5.5 million on total equity of $74.8 million. The bank reported an annualized return on average assets, or ROA, of 0.73 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.