How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, expanding its capital cushion, or use them to address problematic loans, potentially making the bank better able to withstand financial trouble. Obviously, banks that are losing money have less ability to do those things.
De Witt Bank and Trust Company received above-average marks on Bankrate's earnings test, achieving a score of 20 out of a possible 30.
Return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity, is one widely used measure of a bank's earnings. De Witt Bank and Trust Company's most recent annualized quarterly return on equity was 12.08 percent, above the national average of 8.10 percent.
The bank recorded net income of $2.1 million on total equity of $18.3 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 2.17 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.