How profitable a bank is affects its safety and soundness. A bank can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, potentially making the bank more resilient in times of trouble. Conversely, losses reduce a bank's ability to do those things.
Dewey Bank underperformed the average on Bankrate's earnings test, achieving a score of 0 out of a possible 30.
Return on equity, calculated by dividing net income (profit, basically) by the total amount of equity, is one important measure of a bank's earnings. Dewey Bank's most recent annualized quarterly return on equity was -2.90 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $-85,000 on total equity of $2.9 million. The bank reported an annualized return on average assets, or ROA, of -0.39 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.