How profitable a bank is affects its long-term survivability. A bank can retain its earnings, increasing its capital buffer, or use them to address problematic loans, potentially making the bank better prepared to withstand financial shocks. Losses, on the other hand, take away from a bank's ability to do those things.
The Girard National Bank scored 16 out of a possible 30 on Bankrate's earnings test, lower than the national average of 16.52.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one important way to measure a bank's earnings. The Girard National Bank's most recent annualized quarterly return on equity was 7.72 percent, below the national average of 9.28 percent.
The bank earned net income of $3.0 million on total equity of $77.5 million for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 0.92 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.