How profitable a bank is has an effect on its safety and soundness. Earnings can be retained by the bank, expanding its capital buffer, or be used to address problematic loans, potentially making the bank more resilient in tough times. Obviously, banks that are losing money are less able to do those things.
Ocean Bank scored 16 out of a possible 30 on Bankrate's test of earnings, less than the national average of 16.52.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by the total amount of equity. Ocean Bank's most recent annualized quarterly return on equity was 7.34 percent, below the national average of 9.28 percent.
The bank recorded net income of $15.9 million on total equity of $441.8 million for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 0.89 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.