A bank's profitability affects its safety and soundness. A bank can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, potentially making the bank better prepared to withstand economic trouble. Banks that are losing money, however, have less ability to do those things.
1st Bank of Sea Isle City fell short of the national average on Bankrate's test of earnings, achieving a score of 2 out of a possible 30.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one important way to measure a bank's earnings. 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.
The bank earned net income of $106,000 on total equity of $24.8 million for the twelve months ended December 31, 2017. The bank reported 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.