Hartford Business Journal

Industry Outlook: Banking & Finance for new opportunities and grow market share as banks consolidate their branches." Two major deals dominated the headlines in 2021: New York-based M&T Bank's planned acquisition of People's United Bank and Webster Bank's announced merger with Sterling National Bank. As those deals close, they could have a ripple effect in the marketplace, bankers said. War for talent There is also a recognized gap in the banking workforce as more Baby Boomers retire and younger generations enter work life, Webb said. It's an issue that has been exacerbated by the pandemic- induced "Great Resignation," which will likely continue to impact all companies in 2022, including banks. M&A activity is compelling banks to take advantage of ongoing market disruption, including recruiting top bankers and technologists searching for new opportunities when their current employer consolidates, Glidden said. "Companies in Connecticut — banks included — will have to compete in the 'war on talent' in 2022," Glidden said. "As we witness the changing outlooks of our teammates, we must implement ways to aggressively retain and recruit new talent in 2022. Workers will be weighing what is most important to them versus what their employers offer them. The banking industry needs to be nimble, prepared and decisive." Webb said banks must adapt to new ways of working and gain perspective on the role work plays in life in order to attract Millennials and Gen Zers, the oldest of whom are entering the workforce. "The new generations tend to prioritize access to workplace technology and a focus on work-life balance, especially as remote work continues to be a big part of the new way of working," Webb said. "That said, we live and work in a state that has a highly-educated and diverse workforce that banks will begin to leverage to develop the next generation of bankers." In addition to offering flexible and competitive benefits, fostering a diverse and inclusive work environment will also be key to retaining talent, Gianni said. To attract workers, Bank of America is also increasing its minimum wage, with the goal of hitting $25 an hour by 2025 for employees across the country, he said. Strong residential real estate market Since the pandemic began, Connecticut, known for decades as a slow-growing state, saw a population burst, particularly from New York City residents looking for a more spacious and suburban living environment. Gianni said he expects to see that trend continue, giving financial institutions a broader, wealthier customer base to compete for, in addition to an active residential real estate market. "Our state is a very desirable place to live and we anticipate that more people will continue swapping out their small city apartments for the suburbs, seeking the state as a destination for a second home or buying homes for the first time," Gianni said. "The surplus of recently relocated city dwellers is producing a significant increase in wealth. Especially in the southern Connecticut region, our financial advisors at Merrill Lynch Wealth Management have seen unprecedented growth in new client relationships, and the number of net new households in 2021 has tripled compared to what it was five years ago." Sept. 30, 2021 Sept. 30, 2020 % Change Number of CT-based banks 32 34 Net Income (year to date) $1B $678M 55.16% Total assets $136.2B $127.6B 6.81% Total deposits $114.8B $104.6B 9.81% Total loans and leases $84.8B $91.9B -7.68% Total employees 12,776 13,795 -7.39% Despite various economic headwinds, including a low interest rate environment, Connecticut banks enjoyed strong profit and overall growth in 2021. Here's a breakdown of their collective third-quarter results. CT banks see strong growth heading into 2022 Source: Federal Deposit Insurance Corp. Photo: Joan Marcus January 26-30 The Bushnell Broadway Series is co-sponsored by: bushnell.org | 860.987.5900 A Play by Heidi Schreck Directed by Oliver Butler Starring Cassie Beck

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