How profitable a bank is affects its long-term survivability. A bank can retain its earnings, expanding its capital buffer, or use them to deal with problematic loans, likely making the bank better prepared to withstand economic trouble. Conversely, losses diminish a bank's ability to do those things.
On Bankrate's test of earnings, Grand Bank of Texas scored 24 out of a possible 30, beating the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by the total amount of equity, is one important measure of a bank's earnings. Grand Bank of Texas's most recent annualized quarterly return on equity was 15.56 percent, above the national average of 8.10 percent.
The bank reported net income of $3.9 million on total equity of $26.8 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 1.29 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.