How profitable a bank is affects its safety and soundness. A bank can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, likely making the bank better able to withstand financial shocks. However, banks that are losing money are less able to do those things.
United Bank of Philadelphia scored 0 out of a possible 30 on Bankrate's earnings test, falling short of the national average of 16.52.
One key way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by the total amount of equity. United Bank of Philadelphia's most recent annualized quarterly return on equity was -21.80 percent, below the national average of 9.28 percent.
The bank earned net income of $-318,000 on total equity of $3.0 million for the twelve months ended June 30, 2017. The bank had an annualized return on average assets, or ROA, of -1.17 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.