A bank's profitability affects its safety and soundness. A bank can retain its earnings, expanding its capital buffer, or use them to deal with problematic loans, potentially making the bank more resilient in tough times. Conversely, losses lessen a bank's ability to do those things.
Grand Mountain Bank, FSB scored 18 out of a possible 30 on Bankrate's earnings test, exceeding the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by the total amount of equity, is one important measure of a bank's earnings. Grand Mountain Bank, FSB's most recent annualized quarterly return on equity was 10.68 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $945,000 on total equity of $10.2 million. The bank reported an annualized return on average assets, or ROA, of 0.90 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.