A bank's earnings performance affects its safety and soundness. A bank can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, likely making the bank more resilient in times of trouble. Banks that are losing money, however, have less ability to do those things.
On Bankrate's earnings test, Union State Bank scored 12 out of a possible 30, below the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. Union State Bank's most recent annualized quarterly return on equity was 5.21 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $248,000 on total equity of $4.8 million. The bank experienced an annualized return on average assets, or ROA, of 0.80 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.