A bank's ability to earn money has an effect on its safety and soundness. A bank can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, likely making the bank better able to withstand economic shocks. Losses, on the other hand, diminish a bank's ability to do those things.
On Bankrate's test of earnings, Union Building and Loan Savings Bank scored 4 out of a possible 30, falling short of the national average of 15.12.
One important way to measure 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 Union Building and Loan Savings Bank was 1.17 percent, below the national average of 8.10 percent.
The bank recorded net income of $93,000 on total equity of $8.0 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.28 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.