How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, boosting its capital buffer, or use them to address problematic loans, likely making the bank more resilient in tough times. Banks that are losing money, however, have less ability to do those things.
Guaranty Bank and Trust Company scored 26 out of a possible 30 on Bankrate's earnings test, beating the national average of 15.12.
One key measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. The most recent annualized quarterly return on equity for Guaranty Bank and Trust Company was 18.01 percent, above the national average of 8.10 percent.
The bank recorded net income of $12.9 million on total equity of $74.6 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 1.65 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.