A bank's ability to earn money affects its safety and soundness. Earnings can be retained by the bank, increasing its capital buffer, or be used to address problematic loans, likely making the bank better able to withstand economic shocks. Obviously, banks that are losing money have less ability to do those things.
On Bankrate's earnings test, Cendera Bank, National Association scored 18 out of a possible 30, exceeding the national average of 15.12.
One widely used way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. Cendera Bank, National Association's most recent annualized quarterly return on equity was 10.27 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $894,000 on total equity of $9.2 million. The bank reported an annualized return on average assets, or ROA, of 1.03 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.