A bank's ability to earn money affects its long-term survivability. Earnings can be retained by the bank, boosting its capital cushion, or be used to address problematic loans, potentially making the bank better prepared to withstand financial trouble. Losses, on the other hand, lessen a bank's ability to do those things.
Ballinger National Bank scored 18 out of a possible 30 on Bankrate's test of earnings, above the national average of 16.52.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. Ballinger National Bank's most recent annualized quarterly return on equity was 9.96 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank earned net income of $208,000 on total equity of $4.4 million. The bank experienced an annualized return on average assets, or ROA, of 0.96 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.