A bank's profitability affects its long-term survivability. A bank can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, potentially making the bank more resilient in tough times. However, banks that are losing money have less ability to do those things.
Dime Community Bank received above-average marks on Bankrate's test of earnings, achieving a score of 18 out of a possible 30.
One widely used way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. The most recent annualized quarterly return on equity for Dime Community Bank was 9.20 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $55.8 million on total equity of $643.3 million. The bank experienced an annualized return on average assets, or ROA, of 0.90 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.