A bank's ability to earn money affects its safety and soundness. A bank can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, likely making the bank better able to withstand economic shocks. Conversely, losses reduce a bank's ability to do those things.
Global Bank scored 4 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 15.12.
One key way to measure a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by the total amount of equity. Global Bank's most recent annualized quarterly return on equity was 1.10 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $198,000 on total equity of $18.0 million. The bank reported an annualized return on average assets, or ROA, of 0.13 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.