A bank's ability to earn money affects its safety and soundness. A bank can retain its earnings, increasing its capital buffer, or use them to deal with problematic loans, potentially making the bank more resilient in tough times. Losses, on the other hand, lessen a bank's ability to do those things.
DNB First, National Association scored 16 out of a possible 30 on Bankrate's test of earnings, exceeding the national average of 15.12.
One key way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. DNB First, National Association's most recent annualized quarterly return on equity was 7.49 percent, below the national average of 8.10 percent.
The bank reported net income of $8.7 million on total equity of $120.3 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.81 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.