How profitable a bank is affects its safety and soundness. Earnings can be retained by the bank, increasing its capital buffer, or be used to address problematic loans, potentially making the bank better prepared to withstand financial trouble. Losses, on the other hand, reduce a bank's ability to do those things.
Lake Forest Bank and Trust Company beat the national average on Bankrate's earnings test, achieving a score of 26 out of a possible 30.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by the total amount of equity. Lake Forest Bank and Trust Company's most recent annualized quarterly return on equity was 16.33 percent, above the national average of 9.28 percent.
The bank reported net income of $30.3 million on total equity of $377.1 million for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 1.82 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.