How profitable a bank is affects its safety and soundness. Earnings can be retained by the bank, boosting its capital cushion, or be used to address problematic loans, potentially making the bank better able to withstand financial shocks. Banks that are losing money, however, are less able to do those things.
On Bankrate's earnings test, Delaware Place Bank scored 0 out of a possible 30, lower than the national average of 15.12.
One key way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. The most recent annualized quarterly return on equity for Delaware Place Bank was -0.89 percent, below the national average of 8.10 percent.
The bank recorded net income of $-218,000 on total equity of $24.2 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of -0.09 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.