A bank's ability to earn money affects its safety and soundness. Earnings may be retained by the bank, increasing its capital buffer, or be used to deal with problematic loans, likely making the bank better prepared to withstand economic shocks. Conversely, losses diminish a bank's ability to do those things.
Union Community Bank did below-average on Bankrate's earnings test, achieving a score of 8 out of a possible 30.
One important way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. Union Community Bank's most recent annualized quarterly return on equity was 3.44 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $2.9 million on total equity of $83.8 million. The bank had an annualized return on average assets, or ROA, of 0.53 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.