How profitable a bank is affects its safety and soundness. Earnings can be retained by the bank, boosting its capital cushion, or be used to address problematic loans, potentially making the bank more resilient in tough times. However, banks that are losing money have less ability to do those things.
Texas Advantage Community Bank, National Association scored 10 out of a possible 30 on Bankrate's earnings test, lower than the national average of 16.52.
One key measure of a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. Texas Advantage Community Bank, National Association's most recent annualized quarterly return on equity was 5.10 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank reported net income of $248,000 on total equity of $10.0 million. The bank had an annualized return on average assets, or ROA, of 0.46 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.