A bank's earnings performance affects its long-term survivability. Earnings can be retained by the bank, expanding its capital buffer, or be used to deal with problematic loans, likely making the bank more resilient in tough times. However, banks that are losing money have less ability to do those things.
On Bankrate's earnings test, The Union State Bank of Everest scored 24 out of a possible 30, beating out the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one important way to measure a bank's earnings. The Union State Bank of Everest's most recent annualized quarterly return on equity was 15.99 percent, above the national average of 8.10 percent.
The bank reported net income of $5.2 million on total equity of $33.3 million for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 1.66 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.