How profitable a bank is affects its long-term survivability. Earnings can be retained by the bank, giving a boost to its capital cushion, or be used to address problematic loans, likely making the bank better able to withstand economic trouble. Obviously, banks that are losing money are less able to do those things.
LCA Bank Corporation beat the national average on Bankrate's test of earnings, achieving a score of 22 out of a possible 30.
One important measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. The most recent annualized quarterly return on equity for LCA Bank Corporation was 12.59 percent, above the national average of 8.10 percent.
The bank recorded net income of $2.6 million on total equity of $21.2 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.50 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.