A bank's profitability has an effect on its long-term survivability. Earnings may be retained by the bank, expanding its capital buffer, or be used to deal with problematic loans, likely making the bank more resilient in tough times. However, banks that are losing money have less ability to do those things.
On Bankrate's test of earnings, LegacyTexas Bank scored 18 out of a possible 30, above the national average of 16.52.
One important way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. LegacyTexas Bank's most recent annualized quarterly return on equity was 10.01 percent, above the national average of 9.28 percent.
The bank recorded net income of $49.8 million on total equity of $1.01 billion for the twelve months ended June 30, 2017. The bank had an annualized return on average assets, or ROA, of 1.16 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.