How profitable a bank is affects its long-term survivability. Earnings may be retained by the bank, expanding its capital cushion, or be used to address problematic loans, potentially making the bank better able to withstand financial shocks. Losses, on the other hand, lessen a bank's ability to do those things.
On Bankrate's earnings test, Valley National Bank scored 14 out of a possible 30, falling short of the national average of 15.12.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. Valley National Bank's most recent annualized quarterly return on equity was 6.49 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $166.7 million on total equity of $2.64 billion. The bank had an annualized return on average assets, or ROA, of 0.71 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.