A bank's ability to earn money has an effect on its safety and soundness. Earnings may be retained by the bank, increasing its capital buffer, or be used to deal with problematic loans, likely making the bank more resilient in tough times. Conversely, losses reduce a bank's ability to do those things.
Delta National Bank and Trust Company scored 0 out of a possible 30 on Bankrate's test of earnings, coming in below the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one important way to measure a bank's earnings. Delta National Bank and Trust Company's most recent annualized quarterly return on equity was -0.74 percent, below the national average of 8.10 percent.
The bank recorded net income of $-395,000 on total equity of $52.8 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of -0.10 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.