How profitable a bank is affects its long-term survivability. A bank can retain its earnings, expanding its capital cushion, or use them to address problematic loans, likely making the bank better prepared to withstand economic trouble. Banks that are losing money, however, have less ability to do those things.
First Bank of Linden scored 14 out of a possible 30 on Bankrate's earnings test, falling short of the national average of 15.12.
One widely used way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. First Bank of Linden's most recent annualized quarterly return on equity was 6.47 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $733,000 on total equity of $11.3 million. The bank experienced an annualized return on average assets, or ROA, of 0.92 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.