How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, increasing its capital cushion, or use them to deal with problematic loans, potentially making the bank better prepared to withstand economic trouble. Obviously, banks that are losing money have less ability to do those things.
On Bankrate's test of earnings, Lighthouse Bank scored 18 out of a possible 30, beating the national average of 16.52.
One key way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. Lighthouse Bank's most recent annualized quarterly return on equity was 9.43 percent, above the national average of 9.28 percent.
The bank recorded net income of $1.5 million on total equity of $32.6 million for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 1.29 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.