How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, potentially making the bank more resilient in tough times. Banks that are losing money, however, are less able to do those things.
The Bank of Orrick received below-average marks on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.
One key way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. The Bank of Orrick's most recent annualized quarterly return on equity was -0.12 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $-4,000 on total equity of $3.3 million. The bank reported an annualized return on average assets, or ROA, of -0.01 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.