Hartford Business Journal

By Matt Pilon mpilon@hartfordbusiness.com C onnecticut's banking sector remained in the black during what was one of the industry's most unusual and chal- lenging fiscal quarters ever. The 34 banks headquartered in the state booked nearly $229 million in combined profits during the second quarter, according to new data from the Federal Deposit Insurance Corp. (FDIC) Just two banks lost money, and 14 reported higher earnings than they did a year ago, which was long before the novel coro- navirus was first detected in China. Meanwhile, banks here continue to have healthy capi- tal cushions. That perfor- mance came despite a chaotic and strange set of circumstances. To recap, during the three-month period ended June 30, COVID-19 hit its presumed peak in Connecticut, resulting in an estimated 4,000 deaths and nearly 100,000 people filing for unemploy- ment as the economy fell off a cliff. Meanwhile, the federal government enlisted banks big and small to distrib- ute billions in stimulus loans to more than 50,000 Connecticut employers — the single biggest ramp-up in volume most lenders had ever experienced. That nearly every bank managed to produce a profit is notable, given the many challenges they were facing, some of which still linger, said Cyn- thia Merkle, chair of the Connecticut Bankers Association and CEO of Dan- bury's Union Savings Bank. Her bank, whose western Con- necticut-focused branch network also includes a Canton outpost, was among the 18 local lenders that were profitable during the recent quar- ter, but didn't make quite as much money as they did a year ago. Union Savings reported a $4.9-million profit in the second quarter, down about 18% from a year earlier. "We're doing better than I thought we would be, considering [loan payments] we've had to waive," said Merkle, refer- ring to temporary forbearance Union Savings and other banks have grant- ed to business and consumer borrowers during the pandemic. She admits she's even been a bit perplexed at times that things seem to be going so well, given the deep uncertainty over how badly the coronavirus will ultimately impact the economy, and for how long. "It can feel like such a disconnect," she said. Merkle reports no signs of new or accelerating stress levels in Union Be a part of the 2020 In these uncertain and challenging times, we know that now, more than ever how much nonprofi ts need support. The very best way to inform the business community about the opportunities to support that exist in your organization is to be part of the 2020 Giving Guide. It is an impactful way to share your message and the ways in which you are serving your communities. REACH THE BUSINESS MARKETPLACE The Giving Guide will be seen by over 35,000 people in our business community. It is delivered directly to all Hartford Business Journal subscribers and distributed at HBJ's signature events — as well as additional distribution through our strategic Giving Guide nonprofi t and sponsor channels. The Giving Guide digital edition is available at www.HartfordBusiness.com with direct links to our featured nonprofi ts' and sponsors' websites. To see a sample, please go to www. HartfordBusiness.com and click on Editions. GET INVOLVED For sponsorship and feature profi le information please contact: Donna Collins at dcollins@ HartfordBusiness.com or 860-236-9998, ext. 121. Click here to reserve your space in the 2020 Giving Guide! Business Gives Back www.HartfordBusiness.com | 860.236.9998 COMMUNITY & NONPROFIT EXCELLENCE Featuring the United Way of Central and Northeastern Connecticut Business Gives Back 2019 Annual 10 th "No act of kindness, "No act of kindness, "No act of kindness, "No act of kindness, "No act of kindness, "No act of kindness, "No act of kindness, "No act of kindness, "No act of kindness, "No act of kindness, "No act of kindness, "No act of kindness, no matter how small, no matter how small, no matter how small, no matter how small, no matter how small, no matter how small, no matter how small, no matter how small, no matter how small, is ever wasted." is ever wasted." is ever wasted." is ever wasted." is ever wasted." is ever wasted." is ever wasted." – Aesop – Aesop "No act of kindness, no matter how small, is ever wasted." – Aesop GREATER HARTFORD'S BUSINESS NEWS WWW.HARTFORDBUSINESS.COM VOLUME 27 • NUMBER 36 $19.95 NOVEMBER 4, 2019 Sponsored by: In the Black CT banks remain profitable through COVID-19's peak Lesa Vanotti, Torrington Savings Bank president, with John Janco Sr., who she will succeed as CEO later this year. Vanotti says the Fed's interest rate cuts have been a challenge for her bank and others. Cynthia Merkle, CEO, Union Savings Bank

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