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June 20, 2016

CT banks improve profitability, outperform nation

By Greg Bordonaro

Connecticut banks collectively outperformed their national counterparts in the first quarter, boosting profits nearly 12 percent despite continued interest-rate margin pressures.

The 42 banks headquartered in Connecticut saw their collective first-quarter profits increase 11.6 percent to $182 million, compared to $163 million in the year-ago period, according to the Federal Deposit Insurance Corp.

Nationally, commercial banks and savings institutions insured by the FDIC reported aggregate net income of $39.1 billion in the first quarter of 2016, down $765 million, or 1.9 percent, from a year earlier. The decline in earnings was mainly due to banks setting aside more money to cover potential future loan losses and a $2.2 billion decline in non-interest income, FDIC said.

During the first quarter, two Connecticut banks failed to turn a profit, while nearly two-thirds saw their profitability increase.

Total assets and deposits grew 6.9 percent and 6.3 percent, respectively, during the first quarter to $100.6 billion and $76.6 billion. Lending to individuals and businesses also grew, as Connecticut banks reported $72.2 billion in loans and leases on their books at the end of the first quarter, up 7.5 percent from a year earlier.

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