How profitable a bank is affects its safety and soundness. Earnings can be retained by the bank, increasing its capital cushion, or be used to address problematic loans, likely making the bank better able to withstand economic shocks. However, banks that are losing money have less ability to do those things.
On Bankrate's earnings test, Spring Valley City Bank scored 12 out of a possible 30, failing to reach the national average of 15.12.
One key measure of a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. Spring Valley City Bank's most recent annualized quarterly return on equity was 4.95 percent, below the national average of 8.10 percent.
The bank recorded net income of $1.3 million on total equity of $26.0 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.70 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.