A bank's ability to earn money affects its safety and soundness. Earnings can be retained by the bank, increasing its capital cushion, or be used to deal with problematic loans, likely making the bank more resilient in times of trouble. Losses, on the other hand, reduce a bank's ability to do those things.
First Texas Bank received below-average marks on Bankrate's earnings test, achieving a score of 6 out of a possible 30.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one important way to measure a bank's earnings. First Texas Bank's most recent annualized quarterly return on equity was 2.13 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $665,000 on total equity of $31.4 million. The bank reported an annualized return on average assets, or ROA, of 0.23 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.