A bank's ability to earn money has an effect on its long-term survivability. Earnings can be retained by the bank, boosting its capital cushion, or be used to deal with problematic loans, potentially making the bank more resilient in tough times. Losses, on the other hand, diminish a bank's ability to do those things.
On Bankrate's test of earnings, LegacyTexas Bank scored 18 out of a possible 30, exceeding the national average of 16.06.
Return on equity, calculated by dividing net income (profit, basically) by the total amount of equity, is one important way to measure a bank's earnings. The most recent annualized quarterly return on equity for LegacyTexas Bank was 9.51 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $96.3 million on total equity of $1.04 billion. The bank reported an annualized return on average assets, or ROA, of 1.10 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.