How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, likely making the bank better able to withstand financial trouble. Conversely, losses diminish a bank's ability to do those things.
United Bank of Philadelphia received below-average marks on Bankrate's earnings test, achieving a score of 0 out of a possible 30.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one important way to measure a bank's earnings. The most recent annualized quarterly return on equity for United Bank of Philadelphia was -10.07 percent, below the national average of 8.10 percent.
The bank recorded net income of $-308,000 on total equity of $3.2 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of -0.54 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.