Hartford Business Journal

HARTFORDBUSINESS.COM | FEBRUARY 24, 2025 23 FOCUS | Banking & Finance Stephen Lewis is president and CEO of Thomaston Savings Bank, which has one of the fastest-growing multifamily loan portfolios among Connecticut-based lenders. HBJ PHOTO | STEVE LASCHEVER Capital Pipeline Here are CT's fastest-growing commercial lenders ters of 2024, and a 4.55% bump in multifamily real estate loans, FDIC data shows. Those increases were driven, in part, by some community banks diversifying their loan portfolios beyond residential to commercial real estate lending. HBJ conducted an analysis of bank lending patterns to determine Connecticut-based banks with the fastest-growing commercial and industrial, and commercial real estate loan portfolios. Here's what we found: Stable market Darien-based DR Bank, with $704.3 million in assets, saw the biggest jump in commercial and industrial lending through the first three quarters of 2024, with its portfolio growing nearly 253% to $5.3 million. Guilford Savings Bank, with $1.2 billion in assets, had the second- fastest growth rate of 130.8%. GSB grew its commercial and industrial loan portfolio to $27.3 million from $11.8 million, FDIC data shows. Of the state's 29 banks, 17 saw their commercial and indus- trial loan portfolios increase, while 10 saw a decrease; two others had no commercial and industrial loans. Lyle T. Fulton, GSB's executive vice president and chief lending officer, said his bank for the past couple years has implemented a strategic initiative to increase its commercial and industrial (C&I) lending. "Besides the benefit of further diversifying the bank's loan port- folio, it continues our desire to be a one-stop, full-service bank throughout Connecticut," Fulton said. "To accom- plish that, the bank has employed some of the top commercial lenders in the state to execute on our plan. Involvement in trade associations, calling on centers of influence and the traditional feet-on-the-street calling effort have proven to be effective." Fulton said GSB is optimistic about the prospects for increased commer- cial lending opportunities in 2025, but there is some economic uncertainty that could impact the year. "Tariffs, interest rates, cuts in government spending and taxes are all topics on the national level that we are keeping an eye on," he said. "Each could dampen corporate profitability and growth initiatives should they go in the wrong direction." Fulton added that Connecticut's economy has been resilient for the past few years with low unemploy- ment, increased defense spending, and a stable real estate market. On the flip side, the cost of doing business in the state remains elevated with rising utility rates and other expenses. "Connecticut remains a great place to live, work and do business," Fulton By Greg Bordonaro gbordonaro@hartfordbusiness.com A s higher interest rates hung over the economy for most of 2024, banks and borrowers faced tougher lending conditions. Demand for new loans slowed and credit availability tightened as lenders faced a more uncertain economic outlook and were more risk-averse, experts said. In fact, the commercial and indus- trial loan portfolios of the 29 banks headquartered in Connecticut shrunk by a combined 8.23% through the first three quarters of 2024, according to a Hartford Business Journal analysis of Federal Deposit Insurance Corp. data. Those banks, at the end of September, held a combined $16.1 billion in commercial and industrial loans, which are secured or unse- cured credits to businesses for commercial and industrial purposes, and can include working capital advances, term loans, and loans to individuals for business purposes, according to the FDIC. In September 2023, those banks held $17.5 billion in commercial and industrial loans. Despite the challenges, deals still got done, and there was much more activity in other lending categories. For example, Connecticut's 29-based banks recorded a 5.34% increase in commercial real estate loans through the first three quar- Continued on next page Lyle Fulton CT-BASED BANKS WITH FASTEST-GROWING COMMERCIAL AND INDUSTRIAL LOAN PORTFOLIOS 2024 LOAN BALANCE 2023 RANK BANK HQ (in 000s) (in 000s) % CHANGE 1 DR BANK DARIEN $5,328 $1,510 252.8% 2 GUILFORD SAVINGS BANK GUILFORD $27,251 $11,805 130.8% 3 THE TORRINGTON SAVINGS BANK TORRINGTON $6,308 $3,593 75.6% 4 CHELSEA GROTON BANK GROTON $64,388 $49,829 29.2% 5 THE FIRST BANK OF GREENWICH COS COB $52,139 $40,922 27.4% 6 WINDSOR FEDERAL BANK WINDSOR $76,204 $61,884 23.1% 7 NEW HAVEN BANK NEW HAVEN $39,167 $31,810 23.1% 8 NEWTOWN SAVINGS BANK NEWTOWN $88,494 $76,592 15.5% 9 ESSEX SAVINGS BANK ESSEX $29,981 $26,089 14.9% 10 SAVINGS BANK OF DANBURY DANBURY $79,275 $71,398 11% Source: HBJ Analysis; Federal Deposit Insurance Corp. data

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