A bank's ability to earn money has an effect on its long-term survivability. Earnings may be retained by the bank, expanding its capital cushion, or be used to address problematic loans, likely making the bank better prepared to withstand economic shocks. Obviously, banks that are losing money are less able to do those things.
Blue Ridge Bank and Trust Co. outperformed the average on Bankrate's test of earnings, achieving a score of 18 out of a possible 30.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. Blue Ridge Bank and Trust Co.'s most recent annualized quarterly return on equity was 9.04 percent, above the national average of 8.10 percent.
The bank recorded net income of $4.4 million on total equity of $49.3 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.82 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.