A bank's ability to earn money has an effect on its safety and soundness. Earnings can be retained by the bank, giving a boost to its capital cushion, or be used to address problematic loans, likely making the bank better able to withstand economic shocks. Conversely, losses take away from a bank's ability to do those things.
THE VINTON COUNTY NATIONAL BANK underperformed the average on Bankrate's earnings test, achieving a score of 14 out of a possible 30.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one important way to measure a bank's earnings. THE VINTON COUNTY NATIONAL BANK's most recent annualized quarterly return on equity was 7.08 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $7.3 million on total equity of $106.4 million. The bank experienced an annualized return on average assets, or ROA, of 0.81 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.