A bank's ability to earn money has an effect on its long-term survivability. A bank can retain its earnings, increasing its capital cushion, or use them to address problematic loans, likely making the bank better able to withstand economic shocks. Losses, on the other hand, diminish a bank's ability to do those things.
On Bankrate's earnings test, Lakeside Bank scored 26 out of a possible 30, beating the national average of 15.12.
One key way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. Lakeside Bank's most recent annualized quarterly return on equity was 17.86 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $32.2 million on total equity of $185.5 million. The bank had an annualized return on average assets, or ROA, of 2.12 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.