A bank's earnings performance affects its safety and soundness. A bank can retain its earnings, boosting its capital cushion, or use them to deal with problematic loans, likely making the bank better able to withstand financial trouble. Conversely, losses lessen a bank's ability to do those things.
On Bankrate's earnings test, Brazos National Bank scored 18 out of a possible 30, beating out the national average of 15.12.
One key measure of a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. Brazos National Bank's most recent annualized quarterly return on equity was 9.07 percent, above the national average of 8.10 percent.
The bank earned net income of $674,000 on total equity of $7.8 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 2.36 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.