A bank's profitability affects its long-term survivability. Earnings can be retained by the bank, expanding its capital cushion, or be used to address problematic loans, potentially making the bank more resilient in tough times. However, banks that are losing money have less ability to do those things.
On Bankrate's earnings test, West Gate Bank scored 20 out of a possible 30, beating out the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity, is one important way to measure a bank's earnings. West Gate Bank's most recent annualized quarterly return on equity was 12.74 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $6.9 million on total equity of $57.4 million. The bank experienced an annualized return on average assets, or ROA, of 1.41 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.