A bank's profitability has an effect on its safety and soundness. A bank can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, potentially making the bank more resilient in times of trouble. However, banks that are losing money have less ability to do those things.
First United Bank did above-average on Bankrate's earnings test, achieving a score of 24 out of a possible 30.
One key measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. The most recent annualized quarterly return on equity for First United Bank was 15.15 percent, above the national average of 8.10 percent.
The bank recorded net income of $3.6 million on total equity of $24.2 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 1.53 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.