How profitable a bank is has an effect on its safety and soundness. Earnings can be retained by the bank, expanding its capital buffer, or be used to deal with problematic loans, likely making the bank better able to withstand financial shocks. Conversely, losses diminish a bank's ability to do those things.
Valley Bank of Nevada scored 18 out of a possible 30 on Bankrate's earnings test, beating out the national average of 15.12.
One important measure of a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. Valley Bank of Nevada's most recent annualized quarterly return on equity was 9.93 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $964,000 on total equity of $10.4 million. The bank reported an annualized return on average assets, or ROA, of 0.86 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.