How profitable a bank is affects its long-term survivability. A bank can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, likely making the bank better prepared to withstand financial shocks. However, banks that are losing money have less ability to do those things.
On Bankrate's test of earnings, PlainsCapital Bank scored 18 out of a possible 30, above the national average of 15.12.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. The most recent annualized quarterly return on equity for PlainsCapital Bank was 8.41 percent, above the national average of 8.10 percent.
The bank earned net income of $114.5 million on total equity of $1.38 billion for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.20 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.