A bank's ability to earn money has an effect on its safety and soundness. Earnings can be retained by the bank, boosting its capital buffer, or be used to address problematic loans, likely making the bank better able to withstand economic trouble. Losses, on the other hand, take away from a bank's ability to do those things.
On Bankrate's test of earnings, North Valley Bank scored 30 out of a possible 30, better than the national average of 15.12.
One important way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. The most recent annualized quarterly return on equity for North Valley Bank was 21.17 percent, above the national average of 8.10 percent.
The bank recorded net income of $3.9 million on total equity of $19.0 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 2.54 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.