How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, potentially making the bank more resilient in times of trouble. Losses, on the other hand, diminish a bank's ability to do those things.
Department Stores National Bank underperformed the average on Bankrate's test of earnings, achieving a score of 10 out of a possible 30.
One key measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. Department Stores National Bank's most recent annualized quarterly return on equity was 4.88 percent, below the national average of 9.28 percent.
The bank reported net income of $1.5 million on total equity of $60.4 million for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 0.81 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.