A bank's earnings performance affects its safety and soundness. Earnings can be retained by the bank, boosting its capital buffer, or be used to deal with problematic loans, potentially making the bank more resilient in tough times. However, banks that are losing money are less able to do those things.
On Bankrate's test of earnings, Sunrise Bank Dakota scored 0 out of a possible 30, below the national average of 15.12.
One important way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. Sunrise Bank Dakota's most recent annualized quarterly return on equity was -13.30 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $-895,000 on total equity of $6.0 million. The bank reported an annualized return on average assets, or ROA, of -1.40 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.