How profitable a bank is 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. However, banks that are losing money have less ability to do those things.
On Bankrate's test of earnings, Texas Citizens Bank, National Association scored 6 out of a possible 30, less than the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. Texas Citizens Bank, National Association's most recent annualized quarterly return on equity was 2.28 percent, below the national average of 8.10 percent.
The bank earned net income of $929,000 on total equity of $41.9 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.22 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.