How profitable a bank is affects its safety and soundness. Earnings may be retained by the bank, increasing its capital buffer, or be used to deal with problematic loans, potentially making the bank more resilient in tough times. Banks that are losing money, however, are less able to do those things.
1st Bank of Sea Isle City scored 6 out of a possible 30 on Bankrate's test of earnings, less than the national average of 16.52.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by the total amount of equity. The most recent annualized quarterly return on equity for 1st Bank of Sea Isle City was 2.77 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank recorded net income of $344,000 on total equity of $25.1 million. The bank reported an annualized return on average assets, or ROA, of 0.28 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.