How profitable a bank is has an effect on 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 more resilient in tough times. Conversely, losses reduce a bank's ability to do those things.
On Bankrate's test of earnings, Union State Bank scored 0 out of a possible 30, less than the national average of 15.12.
One key way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. Union State Bank's most recent annualized quarterly return on equity was -0.71 percent, below the national average of 8.10 percent.
The bank reported net income of $-94,000 on total equity of $13.1 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of -0.04 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.