A bank's ability to earn money affects its long-term survivability. A bank can retain its earnings, increasing its capital buffer, or use them to address problematic loans, potentially making the bank better able to withstand financial shocks. Conversely, losses take away from a bank's ability to do those things.
The Moody National Bank beat the national average on Bankrate's test of earnings, achieving a score of 16 out of a possible 30.
One widely used way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. The Moody National Bank's most recent annualized quarterly return on equity was 7.55 percent, below the national average of 8.10 percent.
The bank earned net income of $10.2 million on total equity of $139.6 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 1.03 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.