How profitable a bank is affects its long-term survivability. Earnings may be retained by the bank, expanding its capital buffer, or be used to deal with problematic loans, potentially making the bank better able to withstand economic shocks. Conversely, losses lessen a bank's ability to do those things.
On Bankrate's earnings test, North Dallas Bank & Trust Co. scored 10 out of a possible 30, less than the national average of 15.12.
One key measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. North Dallas Bank & Trust Co.'s most recent annualized quarterly return on equity was 4.43 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $6.4 million on total equity of $143.5 million. The bank experienced an annualized return on average assets, or ROA, of 0.46 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.