How profitable a bank is affects its safety and soundness. A bank can retain its earnings, boosting its capital cushion, or use them to address problematic loans, potentially making the bank better able to withstand economic trouble. Banks that are losing money, however, are less able to do those things.
On Bankrate's test of earnings, Dilley State Bank scored 10 out of a possible 30, below the national average of 15.12.
One important measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. Dilley State Bank's most recent annualized quarterly return on equity was 4.08 percent, below the national average of 8.10 percent.
The bank recorded net income of $836,000 on total equity of $20.8 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.67 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.