How profitable a bank is affects its long-term survivability. A bank can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, likely making the bank more resilient in tough times. Conversely, losses lessen a bank's ability to do those things.
Live Oak Banking Company scored 30 out of a possible 30 on Bankrate's test of earnings, exceeding the national average of 16.06.
One key 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 Live Oak Banking Company was 54.68 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $114.0 million on total equity of $307.7 million. The bank reported an annualized return on average assets, or ROA, of 5.33 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.