A bank's earnings performance has an effect on its safety and soundness. A bank can retain its earnings, giving a boost to its capital cushion, or use them to address problematic loans, likely making the bank more resilient in tough times. Conversely, losses lessen a bank's ability to do those things.
The Fidelity Deposit and Discount Bank exceeded the national average on Bankrate's test of earnings, achieving a score of 20 out of a possible 30.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. The Fidelity Deposit and Discount Bank's most recent annualized quarterly return on equity was 11.09 percent, above the national average of 8.10 percent.
The bank recorded net income of $9.3 million on total equity of $86.9 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 1.09 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.