How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, increasing its capital buffer, or use them to deal with problematic loans, likely making the bank more resilient in tough times. Banks that are losing money, however, are less able to do those things.
On Bankrate's earnings test, Lawson Bank scored 8 out of a possible 30, failing to reach the national average of 15.12.
One important measure of a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. Lawson Bank's most recent annualized quarterly return on equity was 3.67 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $459,000 on total equity of $12.5 million. The bank had an annualized return on average assets, or ROA, of 0.38 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.