How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, giving a boost to its capital buffer, or use them to address problematic loans, likely making the bank more resilient in tough times. Losses, on the other hand, reduce a bank's ability to do those things.
Lubbock National Bank did below-average on Bankrate's test of earnings, achieving a score of 10 out of a possible 30.
One widely used measure of a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. The most recent annualized quarterly return on equity for Lubbock National Bank was 4.53 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $4.5 million on total equity of $99.3 million. The bank experienced an annualized return on average assets, or ROA, of 0.44 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.