A bank's ability to earn money affects its safety and soundness. Earnings can be retained by the bank, boosting its capital cushion, or be used to deal with problematic loans, likely making the bank better prepared to withstand financial shocks. Obviously, banks that are losing money have less ability to do those things.
Concorde Bank received above-average marks on Bankrate's earnings test, achieving a score of 20 out of a possible 30.
One key measure of a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. Concorde Bank's most recent annualized quarterly return on equity was 10.60 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $584,000 on total equity of $5.6 million. The bank had 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.