A bank's earnings performance affects its safety and soundness. Earnings may be retained by the bank, increasing its capital buffer, or be used to deal with problematic loans, likely making the bank more resilient in times of trouble. Conversely, losses take away from a bank's ability to do those things.
Laura State Bank fell behind the national average on Bankrate's test of earnings, achieving a score of 6 out of a possible 30.
One widely used way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. The most recent annualized quarterly return on equity for Laura State Bank was 2.25 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $40,000 on total equity of $1.8 million. The bank experienced an annualized return on average assets, or ROA, of 0.22 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.