A bank's profitability has an effect on its safety and soundness. Earnings may be retained by the bank, giving a boost to its capital cushion, or be used to deal with problematic loans, potentially making the bank better able to withstand economic trouble. Conversely, losses reduce a bank's ability to do those things.
Reliabank Dakota exceeded the national average on Bankrate's earnings test, achieving a score of 26 out of a possible 30.
One key measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. Reliabank Dakota's most recent annualized quarterly return on equity was 18.72 percent, above the national average of 8.10 percent.
The bank earned net income of $6.1 million on total equity of $33.9 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.83 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.