How profitable a bank is has an effect on its safety and soundness. Earnings can be retained by the bank, boosting its capital buffer, or be used to address problematic loans, potentially making the bank more resilient in times of trouble. Obviously, banks that are losing money are less able to do those things.
Union Bank & Trust received below-average marks on Bankrate's earnings test, achieving a score of 14 out of a possible 30.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. The most recent annualized quarterly return on equity for Union Bank & Trust was 6.56 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $81.0 million on total equity of $1.25 billion. The bank had an annualized return on average assets, or ROA, of 0.92 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.