How profitable a bank is affects its safety and soundness. A bank can retain its earnings, increasing its capital cushion, or use them to deal with problematic loans, potentially making the bank better able to withstand financial shocks. However, banks that are losing money have less ability to do those things.
On Bankrate's test of earnings, UNICO Bank scored 18 out of a possible 30, above the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one important way to measure a bank's earnings. UNICO Bank's most recent annualized quarterly return on equity was 8.60 percent, above the national average of 8.10 percent.
The bank reported net income of $2.3 million on total equity of $26.6 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.89 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.