A bank's profitability affects its safety and soundness. Earnings can be retained by the bank, giving a boost to its capital buffer, or be used to address problematic loans, potentially making the bank more resilient in times of trouble. Conversely, losses diminish a bank's ability to do those things.
Glacier Bank scored 20 out of a possible 30 on Bankrate's earnings test, beating out the national average of 15.12.
One widely used way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. The most recent annualized quarterly return on equity for Glacier Bank was 10.21 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $127.8 million on total equity of $1.27 billion. The bank had an annualized return on average assets, or ROA, of 1.32 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.