A bank's ability to earn money has an effect on its safety and soundness. Earnings can be retained by the bank, increasing its capital buffer, or be used to address problematic loans, likely making the bank more resilient in tough times. Banks that are losing money, however, are less able to do those things.
On Bankrate's test of earnings, State Bank of De Kalb scored 26 out of a possible 30, exceeding the national average of 15.12.
Return on equity, calculated by dividing net income (essentially, profit) by the total amount of equity, is one important way to measure a bank's earnings. The most recent annualized quarterly return on equity for State Bank of De Kalb was 17.13 percent, above the national average of 8.10 percent.
The bank recorded net income of $4.2 million on total equity of $24.7 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 2.00 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.