How profitable a bank is affects its safety and soundness. A bank can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, likely making the bank better able to withstand economic trouble. Obviously, banks that are losing money are less able to do those things.
Union Savings and Loan Association received below-average marks on Bankrate's earnings test, achieving a score of 10 out of a possible 30.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one widely used measure of a bank's earnings. Union Savings and Loan Association's most recent annualized quarterly return on equity was 4.35 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $627,000 on total equity of $14.7 million. The bank had an annualized return on average assets, or ROA, of 0.43 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.