How profitable a bank is affects its safety and soundness. Earnings may be retained by the bank, boosting its capital buffer, or be used to deal with problematic loans, likely making the bank better prepared to withstand economic shocks. Banks that are losing money, however, have less ability to do those things.
Valley Bank & Trust received above-average marks on Bankrate's test of earnings, achieving a score of 26 out of a possible 30.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one important measure of a bank's earnings. Valley Bank & Trust's most recent annualized quarterly return on equity was 18.41 percent, above the national average of 9.28 percent.
The bank recorded net income of $2.6 million on total equity of $31.2 million for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 1.66 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.