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, likely making the bank more resilient in tough times. Conversely, losses diminish a bank's ability to do those things.
OneUnited Bank scored 0 out of a possible 30 on Bankrate's test of earnings, less 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 the total amount of equity. The most recent annualized quarterly return on equity for OneUnited Bank was -9.62 percent, below the national average of 8.10 percent.
The bank recorded net income of $-4.6 million on total equity of $46.0 million for the twelve months ended December 31, 2017. 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.