A bank's ability to earn money has an effect on its safety and soundness. A bank can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, potentially making the bank better prepared to withstand economic shocks. Losses, on the other hand, reduce a bank's ability to do those things.
On Bankrate's earnings test, Texas Capital Bank, National Association scored 18 out of a possible 30, better than the national average of 16.52.
One widely used way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. Texas Capital Bank, National Association's most recent annualized quarterly return on equity was 9.93 percent, above the national average of 9.28 percent.
The bank earned net income of $97.4 million on total equity of $2.01 billion for the twelve months ended June 30, 2017. The bank had an annualized return on average assets, or ROA, of 0.89 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.