How profitable a bank is has an effect on its safety and soundness. Earnings may be retained by the bank, increasing its capital buffer, or be used to deal with problematic loans, potentially 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 earnings test, United Fidelity Bank, fsb scored 26 out of a possible 30, beating the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity, is one important measure of a bank's earnings. United Fidelity Bank, fsb's most recent annualized quarterly return on equity was 21.46 percent, above the national average of 8.10 percent.
The bank reported net income of $14.8 million on total equity of $83.8 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 2.53 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.