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Savings Institute’s 1Q profit $493K

The parent of Savings Institute Bank & Trust Co. in Willimantic said Wednesday first-quarter profits jumped nine fold, fueled by a generous interest-rate spread.

SI Financial Group Inc. earned $493,000, or 4 cents a share, in the three months ended March 31, up from $56,000, or nothing a share, earned the same quarter a year ago.

Net interest income increased 6.8 percent to $6.4 million in the first quarter from $6 million last year.

The bank said the increase in net interest income was primarily due to lower average rates paid on deposits and borrowings and a higher average balance of securities, offset by a decrease in the average rate earned on interest-earning assets and an increase in average deposits.

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Assets were $882.1 million at March 31, up $9.7 million from a year earlier.

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