How profitable a bank is affects its long-term survivability. Earnings can be retained by the bank, increasing its capital cushion, or be used to address problematic loans, potentially making the bank better able to withstand financial shocks. However, banks that are losing money have less ability to do those things.
Gold Coast Bank beat the national average on Bankrate's earnings test, achieving a score of 18 out of a possible 30.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. Gold Coast Bank's most recent annualized quarterly return on equity was 8.15 percent, above the national average of 8.10 percent.
The bank earned net income of $3.6 million on total equity of $43.4 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.99 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.