How profitable a bank is affects its safety and soundness. A bank can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, potentially making the bank better able to withstand financial trouble. Conversely, losses diminish a bank's ability to do those things.
Spring Valley Bank beat the national average on Bankrate's earnings test, achieving a score of 18 out of a possible 30.
One important way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. Spring Valley Bank's most recent annualized quarterly return on equity was 9.34 percent, above the national average of 8.10 percent.
The bank recorded net income of $2.8 million on total equity of $30.5 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 4.02 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.