How profitable a bank is has an effect on its long-term survivability. Earnings can 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.
Bank of New Jersey fell short of the national average on Bankrate's earnings test, achieving a score of 10 out of a possible 30.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. The most recent annualized quarterly return on equity for Bank of New Jersey was 4.44 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $3.6 million on total equity of $83.3 million. The bank reported an annualized return on average assets, or ROA, of 0.41 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.