How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, expanding its capital cushion, or use them to deal with problematic loans, potentially making the bank better able to withstand financial trouble. Losses, on the other hand, reduce a bank's ability to do those things.
First Bank & Trust East Texas scored 20 out of a possible 30 on Bankrate's earnings test, beating out the national average of 16.52.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by the total amount of equity. First Bank & Trust East Texas's most recent annualized quarterly return on equity was 11.13 percent, above the national average of 9.28 percent.
The bank recorded net income of $5.6 million on total equity of $102.1 million for the twelve months ended June 30, 2017. The bank had an annualized return on average assets, or ROA, of 1.12 percent, above the 1 percent deemed satisfactory in accordance with industry standards, but below the average for U.S. banks of 1.14 percent.