How profitable a bank is has an effect on its safety and soundness. Earnings may be retained by the bank, giving a boost to its capital buffer, or be used to deal with problematic loans, likely making the bank more resilient in times of trouble. Banks that are losing money, however, are less able to do those things.
Texas Bank scored 18 out of a possible 30 on Bankrate's earnings test, beating out 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 measure of a bank's earnings. Texas Bank's most recent annualized quarterly return on equity was 9.56 percent, above the national average of 9.28 percent.
The bank earned net income of $2.2 million on total equity of $46.7 million for the twelve months ended June 30, 2017. The bank had an annualized return on average assets, or ROA, of 1.03 percent, above the 1 percent deemed satisfactory in accordance with industry standards, but below the average for U.S. banks of 1.14 percent.