How profitable a bank is affects its safety and soundness. A bank can retain its earnings, increasing its capital buffer, or use them to address problematic loans, potentially making the bank more resilient in tough times. Losses, on the other hand, diminish a bank's ability to do those things.
Golden Valley Bank did above-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, or net income (profit, basically) divided by the total amount of equity. Golden Valley Bank's most recent annualized quarterly return on equity was 8.27 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $1.8 million on total equity of $22.6 million. The bank experienced an annualized return on average assets, or ROA, of 0.83 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.