How profitable a bank is affects its safety and soundness. Earnings may be retained by the bank, increasing its capital cushion, or be used to deal with problematic loans, likely making the bank more resilient in tough times. Losses, on the other hand, take away from a bank's ability to do those things.
Luther Burbank Savings scored 20 out of a possible 30 on Bankrate's earnings test, beating out the national average of 15.12.
One key measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. Luther Burbank Savings's most recent annualized quarterly return on equity was 12.70 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $74.0 million on total equity of $682.0 million. The bank had an annualized return on average assets, or ROA, of 1.36 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.