A bank's earnings performance affects its long-term survivability. Earnings may be retained by the bank, giving a boost to its capital cushion, or be used to deal with problematic loans, potentially making the bank more resilient in times of trouble. However, banks that are losing money have less ability to do those things.
On Bankrate's earnings test, Gulf Coast Bank and Trust Company scored 30 out of a possible 30, better than the national average of 16.52.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one key measure of a bank's earnings. Gulf Coast Bank and Trust Company's most recent annualized quarterly return on equity was 24.04 percent, above the national average of 9.28 percent.
The bank reported net income of $15.9 million on total equity of $135.8 million for the twelve months ended June 30, 2017. The bank experienced an annualized return on average assets, or ROA, of 2.00 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.