How profitable a bank is has an effect on its safety and soundness. Earnings can be retained by the bank, increasing its capital cushion, or be used to address problematic loans, likely making the bank better prepared to withstand economic trouble. Conversely, losses take away from a bank's ability to do those things.
Golden Eagle Community Bank scored 10 out of a possible 30 on Bankrate's earnings test, lower than the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. The most recent annualized quarterly return on equity for Golden Eagle Community Bank was 4.11 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $686,000 on total equity of $15.7 million. The bank experienced an annualized return on average assets, or ROA, of 0.45 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.