How profitable a bank is has an effect on its safety and soundness. Earnings can be retained by the bank, expanding its capital cushion, or be used to deal with problematic loans, likely making the bank better able to withstand financial trouble. Banks that are losing money, however, have less ability to do those things.
Virginia National Bank scored 20 out of a possible 30 on Bankrate's test of earnings, beating the national average of 15.12.
One widely used way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. Virginia National Bank's most recent annualized quarterly return on equity was 11.11 percent, above the national average of 8.10 percent.
The bank recorded net income of $6.8 million on total equity of $64.0 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 1.09 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.