How profitable a bank is affects its safety and soundness. Earnings can be retained by the bank, giving a boost to its capital cushion, or be used to address problematic loans, likely making the bank better prepared to withstand financial shocks. However, banks that are losing money are less able to do those things.
On Bankrate's test of earnings, Dubuque Bank and Trust Company scored 20 out of a possible 30, beating the national average of 15.12.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one key measure of a bank's earnings. Dubuque Bank and Trust Company's most recent annualized quarterly return on equity was 10.57 percent, above the national average of 8.10 percent.
The bank earned net income of $15.3 million on total equity of $148.3 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.05 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.