A bank's ability to earn money affects its long-term survivability. A bank can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, potentially making the bank more resilient in tough times. Conversely, losses take away from a bank's ability to do those things.
BankVista fell behind the national average on Bankrate's test of earnings, achieving a score of 14 out of a possible 30.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. BankVista's most recent annualized quarterly return on equity was 6.29 percent, below the national average of 8.10 percent.
The bank reported net income of $1.3 million on total equity of $21.2 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.56 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.