How profitable a bank is affects its long-term survivability. A bank can retain its earnings, increasing its capital buffer, or use them to deal with problematic loans, potentially making the bank more resilient in times of trouble. However, banks that are losing money have less ability to do those things.
On Bankrate's test of earnings, LAFAYETTE COMMUNITY BANK scored 10 out of a possible 30, coming in below the national average of 16.52.
Return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity, is one important way to measure a bank's earnings. The most recent annualized quarterly return on equity for LAFAYETTE COMMUNITY BANK was 4.82 percent, below the national average of 9.28 percent.
The bank reported net income of $468,000 on total equity of $19.7 million for the twelve months ended June 30, 2017. The bank had an annualized return on average assets, or ROA, of 0.56 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.