A bank's earnings performance affects its safety and soundness. A bank can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, likely making the bank better able to withstand financial trouble. However, banks that are losing money are less able to do those things.
Elkhorn Valley Bank & Trust outperformed the average on Bankrate's earnings test, achieving a score of 18 out of a possible 30.
Return on equity, calculated by dividing net income (profit, basically) by the total amount of equity, is one important way to measure a bank's earnings. Elkhorn Valley Bank & Trust's most recent annualized quarterly return on equity was 9.41 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $8.1 million on total equity of $89.5 million. The bank had an annualized return on average assets, or ROA, of 1.04 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.