How profitable a bank is affects its long-term survivability. A bank can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, likely making the bank better able to withstand economic shocks. Losses, on the other hand, reduce a bank's ability to do those things.
On Bankrate's earnings test, Mount Vernon Bank and Trust Company scored 14 out of a possible 30, falling short of the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by the total amount of equity. Mount Vernon Bank and Trust Company's most recent annualized quarterly return on equity was 7.01 percent, below the national average of 8.10 percent.
The bank reported net income of $1.1 million on total equity of $16.6 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.97 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.