How profitable a bank is has an effect on its safety and soundness. Earnings may be retained by the bank, expanding its capital buffer, or be used to deal with problematic loans, potentially making the bank more resilient in times of trouble. Losses, on the other hand, take away from a bank's ability to do those things.
Del Norte Bank received above-average marks on Bankrate's earnings test, achieving a score of 20 out of a possible 30.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by the total amount of equity. Del Norte Bank's most recent annualized quarterly return on equity was 12.72 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $885,000 on total equity of $7.5 million. The bank experienced an annualized return on average assets, or ROA, of 1.12 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.