How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, boosting its capital cushion, or use them to deal with 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.
On Bankrate's earnings test, Glen Rock Savings Bank scored 0 out of a possible 30, below the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity, is one key measure of a bank's earnings. The most recent annualized quarterly return on equity for Glen Rock Savings Bank was -3.42 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $-1.1 million on total equity of $31.5 million. 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.