How profitable a bank is has an effect on its long-term survivability. Earnings can be retained by the bank, expanding its capital buffer, or be used to address problematic loans, potentially making the bank better able to withstand economic shocks. Banks that are losing money, however, are less able to do those things.
Gibraltar Bank scored 2 out of a possible 30 on Bankrate's test of earnings, falling short of the national average of 16.52.
One key way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. Gibraltar Bank's most recent annualized quarterly return on equity was 0.74 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank earned net income of $47,000 on total equity of $12.7 million. The bank experienced an annualized return on average assets, or ROA, of 0.09 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.