A bank's profitability has an effect on its long-term survivability. Earnings may be retained by the bank, increasing its capital cushion, or be used to address problematic loans, likely making the bank better prepared to withstand economic trouble. However, banks that are losing money are less able to do those things.
The Lyons National Bank outperformed the average on Bankrate's earnings test, achieving a score of 20 out of a possible 30.
One key way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. The Lyons National Bank's most recent annualized quarterly return on equity was 10.70 percent, above the national average of 8.10 percent.
The bank reported net income of $8.4 million on total equity of $80.2 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.84 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.