How profitable a bank is affects its safety and soundness. A bank can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, likely making the bank better prepared to withstand economic shocks. Losses, on the other hand, lessen a bank's ability to do those things.
On Bankrate's earnings test, Fremont Bank scored 26 out of a possible 30, above the national average of 16.52.
One key measure of a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. Fremont Bank's most recent annualized quarterly return on equity was 16.33 percent, above the national average of 9.28 percent.
The bank reported net income of $23.3 million on total equity of $291.0 million for the twelve months ended June 30, 2017. The bank experienced an annualized return on average assets, or ROA, of 1.27 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.