A bank's profitability affects its long-term survivability. Earnings may be retained by the bank, giving a boost to its capital buffer, or be used to deal with problematic loans, potentially making the bank better able to withstand economic shocks. However, banks that are losing money are less able to do those things.
On Bankrate's earnings test, The Kearny County Bank scored 20 out of a possible 30, beating the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. The most recent annualized quarterly return on equity for The Kearny County Bank was 10.46 percent, above the national average of 8.10 percent.
The bank reported net income of $3.6 million on total equity of $33.9 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.78 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.