A bank's profitability affects its long-term survivability. A bank can retain its earnings, increasing its capital cushion, or use them to address problematic loans, likely making the bank better prepared to withstand economic shocks. Obviously, banks that are losing money have less ability to do those things.
On Bankrate's test of earnings, Blue Gate Bank scored 0 out of a possible 30, lower than the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity, is one important way to measure a bank's earnings. Blue Gate Bank's most recent annualized quarterly return on equity was -18.53 percent, below the national average of 8.10 percent.
The bank recorded net income of $-4.8 million on total equity of $24.8 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of -4.77 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.