How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, expanding its capital buffer, or use them to address problematic loans, potentially making the bank better able to withstand economic trouble. Conversely, losses take away from a bank's ability to do those things.
Lake Region Bank did above-average on Bankrate's earnings test, achieving a score of 18 out of a possible 30.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by the total amount of equity. Lake Region Bank's most recent annualized quarterly return on equity was 8.80 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $869,000 on total equity of $10.2 million. The bank had an annualized return on average assets, or ROA, of 0.80 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.