A bank's ability to earn money affects its safety and soundness. Earnings can be retained by the bank, giving a boost to its capital cushion, or be used to deal with problematic loans, potentially making the bank better prepared to withstand financial trouble. Losses, on the other hand, take away from a bank's ability to do those things.
City National Bank of New Jersey underperformed the average on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.
One widely used way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. City National Bank of New Jersey's most recent annualized quarterly return on equity was -28.87 percent, below the national average of 9.28 percent.
The bank earned net income of $-1.6 million on total equity of $10.9 million for the twelve months ended June 30, 2017. The bank had an annualized return on average assets, or ROA, of -1.44 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.