How profitable a bank is affects its safety and soundness. Earnings can be retained by the bank, boosting its capital buffer, or be used to address problematic loans, potentially making the bank more resilient in times of trouble. Banks that are losing money, however, are less able to do those things.
On Bankrate's earnings test, Valley Bank & Trust scored 18 out of a possible 30, exceeding the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. Valley Bank & Trust's most recent annualized quarterly return on equity was 7.80 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $960,000 on total equity of $11.6 million. The bank experienced an annualized return on average assets, or ROA, of 1.42 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.