How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, giving a boost to its capital buffer, or use them to address problematic loans, potentially making the bank better able to withstand financial shocks. Banks that are losing money, however, have less ability to do those things.
On Bankrate's test of earnings, Glasford State Bank scored 14 out of a possible 30, lower than the national average of 15.12.
One key measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. The most recent annualized quarterly return on equity for Glasford State Bank was 6.93 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $204,000 on total equity of $3.0 million. The bank had an annualized return on average assets, or ROA, of 0.53 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.