How profitable a bank is has an effect on its safety and soundness. Earnings may be retained by the bank, giving a boost to its capital cushion, or be used to deal with problematic loans, potentially making the bank more resilient in tough times. Conversely, losses diminish a bank's ability to do those things.
Capital Bank of New Jersey received above-average marks on Bankrate's test of earnings, achieving a score of 20 out of a possible 30.
One widely used measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. Capital Bank of New Jersey's most recent annualized quarterly return on equity was 10.97 percent, above the national average of 8.10 percent.
The bank earned net income of $4.7 million on total equity of $43.4 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.99 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.