A bank's profitability has an effect on its long-term survivability. A bank can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, likely making the bank better prepared to withstand financial shocks. Conversely, losses take away from a bank's ability to do those things.
Lindell Bank & Trust Company outperformed the average on Bankrate's earnings test, achieving a score of 20 out of a possible 30.
One widely used way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. Lindell Bank & Trust Company's most recent annualized quarterly return on equity was 11.11 percent, above the national average of 8.10 percent.
The bank reported net income of $10.2 million on total equity of $94.2 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 1.84 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.