How profitable a bank is has an effect on its long-term survivability. Earnings may be retained by the bank, expanding its capital cushion, or be used to deal with problematic loans, likely making the bank more resilient in tough times. Conversely, losses lessen a bank's ability to do those things.
Bank of Denton scored 8 out of a possible 30 on Bankrate's test of earnings, failing to reach the national average of 15.12.
One important measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. Bank of Denton's most recent annualized quarterly return on equity was 3.31 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $108,000 on total equity of $3.3 million. The bank experienced an annualized return on average assets, or ROA, of 0.61 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.