How profitable a bank is affects its safety and soundness. A bank can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, likely making the bank more resilient in times of trouble. However, banks that are losing money have less ability to do those things.
Tri-Valley Bank did below-average on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. The most recent annualized quarterly return on equity for Tri-Valley Bank was -11.58 percent, below the national average of 8.10 percent.
The bank recorded net income of $-837,000 on total equity of $6.9 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of -1.37 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.