How profitable a bank is has an effect on its long-term survivability. Earnings may be retained by the bank, expanding its capital buffer, or be used to address problematic loans, potentially making the bank better prepared to withstand economic trouble. Losses, on the other hand, reduce a bank's ability to do those things.
On Bankrate's test of earnings, United Bank of Union scored 22 out of a possible 30, above the national average of 15.12.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. The most recent annualized quarterly return on equity for United Bank of Union was 13.08 percent, above the national average of 8.10 percent.
The bank earned net income of $4.6 million on total equity of $36.3 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.44 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.