A bank's earnings performance affects its long-term survivability. A bank can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, potentially making the bank better able to withstand financial trouble. Conversely, losses lessen a bank's ability to do those things.
Lone Star Capital Bank, National Association underperformed the average on Bankrate's test of earnings, achieving a score of 8 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. Lone Star Capital Bank, National Association's most recent annualized quarterly return on equity was 3.55 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank earned net income of $564,000 on total equity of $32.3 million. The bank experienced an annualized return on average assets, or ROA, of 0.46 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.