A bank's ability to earn money has an effect on its long-term survivability. Earnings may be retained by the bank, expanding its capital buffer, or be used to address problematic loans, potentially making the bank better able to withstand financial trouble. Losses, on the other hand, take away from a bank's ability to do those things.
The Bank of Glen Burnie underperformed the average on Bankrate's earnings test, achieving a score of 6 out of a possible 30.
One widely used measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. The Bank of Glen Burnie's most recent annualized quarterly return on equity was 2.94 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $996,000 on total equity of $33.8 million. The bank reported an annualized return on average assets, or ROA, of 0.25 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.