A bank's ability to earn money has an effect on its long-term survivability. Earnings may be retained by the bank, increasing its capital cushion, or be used to address problematic loans, potentially making the bank better prepared to withstand economic trouble. Banks that are losing money, however, are less able to do those things.
On Bankrate's earnings test, Grand Bank of Texas scored 20 out of a possible 30, above the national average of 16.52.
Return on equity, calculated by dividing net income (profit, basically) by the total amount of equity, is one important way to measure a bank's earnings. Grand Bank of Texas's most recent annualized quarterly return on equity was 10.48 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank reported net income of $1.3 million on total equity of $24.4 million. The bank reported an annualized return on average assets, or ROA, of 0.85 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.