A bank's earnings performance has an effect on its long-term survivability. A bank can retain its earnings, giving a boost to its capital buffer, or use them to address problematic loans, likely making the bank more resilient in times of trouble. Obviously, banks that are losing money have less ability to do those things.
The Glen Burnie Mutual Savings Bank fell behind the national average on Bankrate's earnings test, achieving a score of 6 out of a possible 30.
One key measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. The Glen Burnie Mutual Savings Bank's most recent annualized quarterly return on equity was 2.87 percent, below the national average of 8.10 percent.
The bank earned net income of $203,000 on total equity of $7.2 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.22 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.