How profitable a bank is affects its long-term survivability. A bank can retain its earnings, increasing its capital buffer, or use them to deal with problematic loans, potentially making the bank more resilient in tough times. Losses, on the other hand, reduce a bank's ability to do those things.
West Texas National Bank beat the national average on Bankrate's earnings test, achieving a score of 22 out of a possible 30.
One important measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. West Texas National Bank's most recent annualized quarterly return on equity was 13.53 percent, above the national average of 9.28 percent.
The bank earned net income of $7.5 million on total equity of $116.6 million for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 1.24 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.