A bank's earnings performance has an effect on its safety and soundness. A bank can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, likely making the bank more resilient in tough times. Banks that are losing money, however, are less able to do those things.
On Bankrate's test of earnings, Texas Community Bank scored 18 out of a possible 30, exceeding the national average of 15.12.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. Texas Community Bank's most recent annualized quarterly return on equity was 9.14 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $11.5 million on total equity of $131.6 million. The bank experienced an annualized return on average assets, or ROA, of 0.91 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.