How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, potentially making the bank better able to withstand economic trouble. Obviously, banks that are losing money are less able to do those things.
On Bankrate's earnings test, Texas Gulf Bank, National Association scored 20 out of a possible 30, better than the national average of 15.12.
One key measure of 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 Texas Gulf Bank, National Association was 10.36 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $6.4 million on total equity of $63.6 million. The bank had an annualized return on average assets, or ROA, of 1.11 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.