How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, likely making the bank better prepared to withstand financial trouble. Obviously, banks that are losing money have less ability to do those things.
On Bankrate's test of earnings, The Bank of Delmarva scored 16 out of a possible 30, exceeding the national average of 15.12.
One key way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. The Bank of Delmarva's most recent annualized quarterly return on equity was 7.22 percent, below the national average of 8.10 percent.
The bank recorded net income of $3.6 million on total equity of $50.7 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.