How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, potentially making the bank more resilient in tough times. Obviously, banks that are losing money have less ability to do those things.
On Bankrate's earnings test, 1st Bank of Sea Isle City scored 2 out of a possible 30, coming in below the national average of 16.06.
One widely used way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. 1st Bank of Sea Isle City's most recent annualized quarterly return on equity was 0.42 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $106,000 on total equity of $24.8 million. The bank experienced an annualized return on average assets, or ROA, of 0.04 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.