How profitable a bank is has an effect on its safety and soundness. Earnings can be retained by the bank, giving a boost to its capital cushion, or be used to deal with problematic loans, likely making the bank better prepared to withstand economic shocks. However, banks that are losing money have less ability to do those things.
Gulf Coast Bank and Trust Company beat the national average on Bankrate's test of earnings, achieving a score of 28 out of a possible 30.
One important way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. The most recent annualized quarterly return on equity for Gulf Coast Bank and Trust Company was 20.50 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $27.6 million on total equity of $138.4 million. The bank reported an annualized return on average assets, or ROA, of 1.73 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.