A bank's earnings performance has an effect on its safety and soundness. A bank can retain its earnings, giving a boost to its capital buffer, or use them to deal with problematic loans, potentially making the bank more resilient in times of trouble. Losses, on the other hand, take away from a bank's ability to do those things.
Signature Bank of Georgia fell short of the national average on Bankrate's earnings test, achieving a score of 4 out of a possible 30.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. Signature Bank of Georgia's most recent annualized quarterly return on equity was 1.32 percent, below the national average of 8.10 percent.
The bank reported net income of $132,000 on total equity of $10.1 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.13 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.