How profitable a bank is affects its safety and soundness. A bank can retain its earnings, expanding its capital cushion, or use them to address problematic loans, likely making the bank more resilient in tough times. Banks that are losing money, however, are less able to do those things.
Lake Community Bank scored 16 out of a possible 30 on Bankrate's earnings test, beating the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. The most recent annualized quarterly return on equity for Lake Community Bank was 7.84 percent, below the national average of 8.10 percent.
The bank reported net income of $1.2 million on total equity of $15.6 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.98 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.