How profitable a bank is has an effect on its safety and soundness. Earnings may be retained by the bank, boosting its capital cushion, or be used to address problematic loans, likely making the bank more resilient in tough times. Losses, on the other hand, lessen a bank's ability to do those things.
On Bankrate's test of earnings, TIB The Independent Bankersbank, National Association scored 16 out of a possible 30, beating out the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one important measure of a bank's earnings. TIB The Independent Bankersbank, National Association's most recent annualized quarterly return on equity was 7.59 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $19.2 million on total equity of $256.6 million. The bank experienced an annualized return on average assets, or ROA, of 0.74 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.