A bank's earnings performance has an effect on its long-term survivability. A bank can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, potentially making the bank more resilient in tough times. Conversely, losses diminish a bank's ability to do those things.
Logansport Savings Bank scored 18 out of a possible 30 on Bankrate's earnings test, better than the national average of 15.12.
One important measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. Logansport Savings Bank's most recent annualized quarterly return on equity was 9.08 percent, above the national average of 8.10 percent.
The bank reported net income of $2.0 million on total equity of $22.9 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 1.20 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.