A bank's profitability has an effect on its long-term survivability. Earnings can be retained by the bank, expanding its capital buffer, or be used to deal with problematic loans, potentially making the bank better prepared to withstand financial trouble. Obviously, banks that are losing money are less able to do those things.
On Bankrate's earnings test, Blue Ridge Bank and Trust Co. scored 18 out of a possible 30, exceeding the national average of 16.52.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one important measure of a bank's earnings. The most recent annualized quarterly return on equity for Blue Ridge Bank and Trust Co. was 10.11 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank earned net income of $2.4 million on total equity of $48.4 million. The bank experienced an annualized return on average assets, or ROA, of 0.92 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.