A bank's earnings performance has an effect on its long-term survivability. A bank can retain its earnings, expanding its capital buffer, or use them to address problematic loans, potentially making the bank better able to withstand economic shocks. However, banks that are losing money have less ability to do those things.
On Bankrate's test of earnings, Rancho Santa Fe Thrift & Loan Association scored 8 out of a possible 30, below the national average of 15.12.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. Rancho Santa Fe Thrift & Loan Association's most recent annualized quarterly return on equity was 3.70 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $1.0 million on total equity of $27.4 million. The bank reported an annualized return on average assets, or ROA, of 1.34 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.