A bank's profitability 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 better able to withstand economic shocks. Conversely, losses lessen a bank's ability to do those things.
On Bankrate's earnings test, Gateway Bank scored 10 out of a possible 30, coming in below the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by the total amount of equity. The most recent annualized quarterly return on equity for Gateway Bank was 4.62 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $360,000 on total equity of $8.4 million. The bank had an annualized return on average assets, or ROA, of 0.51 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.