How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, likely making the bank better able to withstand economic shocks. Banks that are losing money, however, are less able to do those things.
On Bankrate's earnings test, Union State Bank scored 14 out of a possible 30, below the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one important way to measure a bank's earnings. The most recent annualized quarterly return on equity for Union State Bank was 6.09 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $944,000 on total equity of $15.5 million. The bank had an annualized return on average assets, or ROA, of 0.65 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.