A bank's profitability has an effect on its long-term survivability. A bank can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, likely making the bank better able to withstand economic shocks. However, banks that are losing money have less ability to do those things.
Lee County Bank outperformed the average on Bankrate's earnings test, achieving a score of 22 out of a possible 30.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. Lee County Bank's most recent annualized quarterly return on equity was 12.43 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank recorded net income of $1.2 million on total equity of $19.5 million. The bank reported an annualized return on average assets, or ROA, of 1.55 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.