How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, giving a boost to its capital cushion, or use them to address problematic loans, likely making the bank more resilient in times of trouble. Obviously, banks that are losing money are less able to do those things.
On Bankrate's test of earnings, United Bank of Iowa scored 24 out of a possible 30, better than the national average of 15.12.
One important way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. United Bank of Iowa's most recent annualized quarterly return on equity was 15.04 percent, above the national average of 8.10 percent.
The bank recorded net income of $24.5 million on total equity of $168.2 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 1.70 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.