A bank's profitability affects its long-term survivability. A bank can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, likely making the bank better prepared to withstand economic trouble. Losses, on the other hand, reduce a bank's ability to do those things.
First State Bank Central Texas scored 24 out of a possible 30 on Bankrate's test of earnings, better than the national average of 15.12.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one important way to measure a bank's earnings. First State Bank Central Texas's most recent annualized quarterly return on equity was 12.06 percent, above the national average of 8.10 percent.
The bank recorded net income of $18.6 million on total equity of $129.3 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 1.34 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.