A bank's profitability affects its safety and soundness. A bank can retain its earnings, increasing its capital buffer, or use them to address problematic loans, potentially making the bank more resilient in times of trouble. Losses, on the other hand, lessen a bank's ability to do those things.
On Bankrate's test of earnings, De Witt Savings Bank scored 8 out of a possible 30, less than the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. De Witt Savings Bank's most recent annualized quarterly return on equity was 3.54 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $465,000 on total equity of $13.5 million. The bank experienced an annualized return on average assets, or ROA, of 0.42 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.