How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, likely making the bank more resilient in tough times. Obviously, banks that are losing money have less ability to do those things.
On Bankrate's test of earnings, Tri Valley Bank scored 30 out of a possible 30, beating out the national average of 15.12.
One key measure of a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. Tri Valley Bank's most recent annualized quarterly return on equity was 22.55 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $858,000 on total equity of $4.0 million. The bank had an annualized return on average assets, or ROA, of 1.90 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.