A bank's earnings performance affects its safety and soundness. Earnings may be retained by the bank, expanding its capital cushion, 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 Orient Bank scored 10 out of a possible 30, less than the national average of 15.12.
One key measure of a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. United Orient Bank's most recent annualized quarterly return on equity was 4.32 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $534,000 on total equity of $12.6 million. The bank experienced an annualized return on average assets, or ROA, of 0.55 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.