First Connecticut Bancorp Inc., the holding company for Farmington Bank, reported net income of $4.2 million for the third quarter of 2015, up 68 percent from a year earlier. That’s compared to net income of $2.5 million for the quarter ended September 30, 2014.
Net interest income increased $1.7 million to $17.7 million in the third quarter of 2015 compared to the prior year quarter, the bank reported, primarily due to a $362.3 million increase in the average net loan balance offset by an $879,000 increase in interest expense.
The bank’s net interest margin decreased to 2.79 percent in the third quarter of 2015 compared to 2.91 percent in the third quarter of 2014 primarily due to a 5 basis point decrease in the yield on interest-earning assets and a 7 basis point increase in the cost of interest-bearing liabilities.
The bank expects non-organic growth from the recent opening of a branch in Massachusetts with another slated for opening in November. It plans to open offices in Vernon and Manchester in the first quarter of 2016.
Total loans increased $50.4 million to $2.3 billion at September 30, 2015 and increased $287.6 million or 14% from a year ago. Loan growth during the quarter was primarily driven by an $82 million increase in the commercial loan portfolio offset by a $31.5 million decrease in the residential loan portfolio.
Overall deposits reached $2.0 billion in the third quarter of 2015. That’s a $245.4 million or 14 percent increase from the same quarter in 2014.
