A bank's profitability affects its safety and soundness. A bank can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, likely making the bank more resilient in tough times. Losses, on the other hand, take away from a bank's ability to do those things.
On Bankrate's earnings test, Bank of Belle Glade scored 10 out of a possible 30, lower than the national average of 16.52.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one key measure of a bank's earnings. Bank of Belle Glade's most recent annualized quarterly return on equity was 5.11 percent, below the national average of 9.28 percent.
The bank reported net income of $208,000 on total equity of $8.3 million for the twelve months ended June 30, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.39 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.