How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, potentially making the bank better prepared to withstand economic shocks. Losses, on the other hand, take away from a bank's ability to do those things.
First Guaranty Bank received above-average marks on Bankrate's test of earnings, achieving a score of 18 out of a possible 30.
One important way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. First Guaranty Bank's most recent annualized quarterly return on equity was 8.72 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $13.9 million on total equity of $170.8 million. The bank experienced an annualized return on average assets, or ROA, of 0.84 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.