A bank's earnings performance affects its long-term survivability. A bank can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, potentially making the bank better able to withstand economic trouble. Conversely, losses reduce a bank's ability to do those things.
Valley Central Bank did below-average on Bankrate's earnings test, achieving a score of 2 out of a possible 30.
One key way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. Valley Central Bank's most recent annualized quarterly return on equity was 0.77 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $214,000 on total equity of $27.7 million. The bank had an annualized return on average assets, or ROA, of 0.19 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.