A bank's ability to earn money has an effect on its long-term survivability. Earnings can be retained by the bank, boosting its capital buffer, or be used to deal with problematic loans, potentially making the bank more resilient in times of trouble. Losses, on the other hand, diminish a bank's ability to do those things.
The First National Bank of Hebbronville scored 20 out of a possible 30 on Bankrate's test of earnings, beating out the national average of 15.12.
One key measure of a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. The First National Bank of Hebbronville's most recent annualized quarterly return on equity was 9.77 percent, above the national average of 8.10 percent.
The bank recorded net income of $1.6 million on total equity of $15.7 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.42 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.