A bank's ability to earn money has an effect on its safety and soundness. A bank can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, likely making the bank more resilient in times of trouble. Losses, on the other hand, reduce a bank's ability to do those things.
Texas Bank exceeded the national average on Bankrate's test of earnings, achieving a score of 26 out of a possible 30.
One important measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. The most recent annualized quarterly return on equity for Texas Bank was 18.22 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $11.1 million on total equity of $62.2 million. The bank reported an annualized return on average assets, or ROA, of 2.38 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.