Positive returns

Many long-suffering bank shareholders are finally seeing positive returns on the equity they invested in banks headquartered on the Gulf Coast.

Two important financial ratios, return on equity and return on assets, showed significant improvement for the first nine months of 2013 as most banks grew their profits.

Return on equity is measured as annualized net income as a percent of average equity. It's what the bank's owners are earning on their investment. Return on assets is a similar ratio that measures net income as a percent of average total assets. This tells you how well a bank is managing its assets to generate profits regardless of the bank's size.