A bank's earnings performance has an effect on its long-term survivability. Earnings may be retained by the bank, boosting its capital cushion, or be used to address problematic loans, likely making the bank more resilient in tough times. Losses, on the other hand, reduce a bank's ability to do those things.
On Bankrate's test of earnings, Vermilion Valley Bank scored 20 out of a possible 30, beating 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 the total amount of equity. The most recent annualized quarterly return on equity for Vermilion Valley Bank was 10.66 percent, above the national average of 8.10 percent.
The bank reported net income of $2.0 million on total equity of $19.4 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 1.65 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.