How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, potentially making the bank better able to withstand financial trouble. Banks that are losing money, however, are less able to do those things.
On Bankrate's earnings test, VALOR BANK scored 18 out of a possible 30, better than the national average of 15.12.
One key measure of a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. The most recent annualized quarterly return on equity for VALOR BANK was 10.07 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $508,000 on total equity of $6.0 million. The bank had an annualized return on average assets, or ROA, of 0.84 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.