A bank's profitability affects its long-term survivability. A bank can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, potentially making the bank more resilient in tough times. However, banks that are losing money have less ability to do those things.
Reliabank Dakota scored 26 out of a possible 30 on Bankrate's test of earnings, better than the national average of 16.52.
One key measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. Reliabank Dakota's most recent annualized quarterly return on equity was 18.24 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank earned net income of $2.9 million on total equity of $32.3 million. The bank experienced an annualized return on average assets, or ROA, of 1.80 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.