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