How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, expanding its capital cushion, or use them to address problematic loans, potentially making the bank more resilient in times of trouble. Obviously, banks that are losing money have less ability to do those things.
Bank of Louisiana did above-average on Bankrate's test of earnings, achieving a score of 22 out of a possible 30.
One key measure of a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. The most recent annualized quarterly return on equity for Bank of Louisiana was 13.45 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $757,000 on total equity of $5.8 million. The bank reported an annualized return on average assets, or ROA, of 1.48 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.