A bank's profitability has an effect on its safety and soundness. Earnings may be retained by the bank, increasing its capital buffer, or be used to address problematic loans, likely making the bank better prepared to withstand economic trouble. Losses, on the other hand, diminish a bank's ability to do those things.
On Bankrate's test of earnings, Dallas Capital Bank, National Association scored 14 out of a possible 30, less than the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one important measure of a bank's earnings. Dallas Capital Bank, National Association's most recent annualized quarterly return on equity was 7.25 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $5.7 million on total equity of $82.9 million. The bank reported an annualized return on average assets, or ROA, of 0.76 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.