How profitable a bank is affects its long-term survivability. Earnings may be retained by the bank, giving a boost to its capital buffer, or be used to deal with problematic loans, potentially making the bank more resilient in tough times. Obviously, banks that are losing money are less able to do those things.
On Bankrate's earnings test, The National Bank of Blacksburg scored 16 out of a possible 30, above the national average of 15.12.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by the total amount of equity. The National Bank of Blacksburg's most recent annualized quarterly return on equity was 8.03 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $14.6 million on total equity of $183.1 million. The bank reported an annualized return on average assets, or ROA, of 1.17 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.