A bank's earnings performance has an effect on its safety and soundness. Earnings can be retained by the bank, increasing its capital cushion, or be used to address problematic loans, likely making the bank more resilient in tough times. Conversely, losses lessen a bank's ability to do those things.
First National Bank Texas did above-average on Bankrate's test of earnings, achieving a score of 26 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. The most recent annualized quarterly return on equity for First National Bank Texas was 17.31 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $24.3 million on total equity of $146.8 million. The bank reported an annualized return on average assets, or ROA, of 1.46 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.