A bank's ability to earn money affects 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 able to withstand economic shocks. Conversely, losses lessen a bank's ability to do those things.
On Bankrate's earnings test, Verus Bank of Commerce scored 20 out of a possible 30, exceeding the national average of 16.52.
One important measure of a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. The most recent annualized quarterly return on equity for Verus Bank of Commerce was 11.99 percent, above the national average of 9.28 percent.
The bank reported net income of $2.0 million on total equity of $35.1 million for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 1.63 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.