How profitable a bank is affects its long-term survivability. A bank can retain its earnings, boosting its capital buffer, or use them to deal with problematic loans, potentially making the bank better able to withstand economic trouble. However, banks that are losing money have less ability to do those things.
On Bankrate's test of earnings, Gouverneur Savings and Loan Association scored 6 out of a possible 30, lower than the national average of 15.12.
One important measure of a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. Gouverneur Savings and Loan Association's most recent annualized quarterly return on equity was 2.86 percent, below the national average of 8.10 percent.
The bank recorded net income of $853,000 on total equity of $29.8 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.62 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.