How profitable a bank is has an effect on its safety and soundness. Earnings can be retained by the bank, expanding its capital buffer, or be used to deal with problematic loans, likely making the bank more resilient in tough times. Obviously, banks that are losing money have less ability to do those things.
On Bankrate's test of earnings, Zapata National Bank scored 20 out of a possible 30, better than the national average of 15.12.
One important way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. Zapata National Bank's most recent annualized quarterly return on equity was 11.05 percent, above the national average of 8.10 percent.
The bank reported net income of $1.2 million on total equity of $10.7 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 1.39 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.