A bank's earnings performance affects its safety and soundness. Earnings can be retained by the bank, boosting its capital buffer, or be used to address problematic loans, likely making the bank better prepared to withstand financial shocks. Banks that are losing money, however, are less able to do those things.
Gibraltar Bank underperformed the average on Bankrate's earnings test, achieving a score of 0 out of a possible 30.
One widely used measure of a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. Gibraltar Bank's most recent annualized quarterly return on equity was -3.58 percent, below the national average of 8.10 percent.
The bank earned net income of $-452,000 on total equity of $12.2 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of -0.43 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.