A bank's ability to earn money has an effect on its long-term survivability. A bank can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, likely making the bank better able to withstand economic trouble. Banks that are losing money, however, are less able to do those things.
On Bankrate's test of earnings, Lee Bank scored 6 out of a possible 30, lower than the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity, is one important way to measure a bank's earnings. Lee Bank's most recent annualized quarterly return on equity was 2.69 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $789,000 on total equity of $29.9 million. The bank had an annualized return on average assets, or ROA, of 0.23 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.