Hartford Business Journal

www.HartfordBusiness.com June 20, 2016 • Hartford Business Journal 5 REPORTER'S NOTEBOOK CT banks improve profitability, outperform nation C o n n e c t i c u t banks collectively outperformed their national counter- parts in the first quarter, boosting profits nearly 12 percent despite con- tinued interest-rate margin pressures. The 42 banks headquartered in Connecticut saw their collective first-quarter profits increase 11.6 per - cent to $182 million, compared to $163 million in the year-ago period, according to the Federal Deposit Insurance Corp. Nationally, commercial banks and sav- ings institutions insured by the FDIC report- ed aggregate net income of $39.1 billion in the first quarter of 2016, down $765 mil- lion, or 1.9 percent, from a year earlier. The decline in earnings was mainly due to banks setting aside more money to cover potential future loan losses and a $2.2 billion decline in non-interest income, FDIC said. During the first quarter, two Connecti- cut banks failed to turn a profit, while nearly two-thirds saw their profitability increase. Total assets and deposits grew 6.9 per- cent and 6.3 percent, respectively, during the first quarter to $100.6 billion and $76.6 billion. Lending to individuals and busi- nesses also grew, as Connecticut banks reported $72.2 billion in loans and leases on their books at the end of the first quarter, up 7.5 percent from a year earlier. — Greg Bordonaro PDS has been meeting the needs of the construction industry since 1965. Our dedicated team of design and construction professionals welcomes the challenge of serving its past and future customers on their most demanding projects. Hartford Regional Fire School | Windsor Locks, CT PDS Engineering & Construction served as General Contractor for the construction of a new maintenance facility and three-story burn building at the Hartford Regional Fire School. The facility offers up to date, safe training and serves as a coordination point for all county training activities. Project Features: - 7,000 SF maintenance facility - 5,300 SF burn building - Heavy concrete Total Project Size: 12,300 SF 107 Old Windsor Road, Bloomfield, CT 06002 (860) 242-8586 | Fax (860) 242-8587 www.pdsec.com DESIGN BUILDERS • GENERAL CONTRACTORS • CONSTRUCTION MANAGERS SPOTLIGHT ON: Health & Safety PDS ENGINEERING & CONSTRUCTION, INC. THINK • PLAN • BUILD Restrictions apply. Not available in all areas. © 2016 Comcast. All rights reserved. Dutch Point CU asks to absorb MidConn Wethersfield's $261 million-asset Dutch Point Credit Union has applied to absorb a Middletown credit cooperative about one- tenth its size, regulators say. Dutch Point and MidConn Federal Credit Union, with $21.6 million in assets as of March 31, have filed a merger application with the state Department of Banking. The state over- sees non-federally chartered lenders with headquarters or operations in this state. If approved, their merger would con- tinue the trend of smaller credit unions in Connecticut and elsewhere being swal- lowed up by larger ones, to better satisfy members' needs for auto, home-equity and other loans, plus interest-bearing savings accounts and certificates of deposit. Smaller CUs, too, find it financially tougher to keep pace with and afford ever-changing technology, as well as sat- isfying regulators' tightened compliance standards and capital requirements. MidConn, with 2,507 members, posted a $13,121 margin in the first quarter, up from $2,860 a year earlier, according to data from the National Credit Union Administration (NCUA). Dutch Point, with 21,032 members, posted a $341,633 margin in the first quar- ter, up from $211,750 in the year-ago period, NCUA data shows. MidConn would become Dutch Point's second merger in the last three years. In 2013, it merged with former 5,000-plus-member Capitol Region Federal Credit Union. In 2004, the state expanded Dutch Point's community charter to serve Hartford, Mid- dlesex New Haven and New London counties. — Gregory Seay CT Bank Performance (in millions) 1Q 2016 1Q 2015 No. of CT-based Bank 42 44 Net Income $182 $163 11.7% Total Assets $100,648 $94,170 6.9% Total Deposits $76,582 $72,047 6.3% Total Loans & Leases $72,174 $67,152 7.5% S O U R C E : F E D E R A L D E P O S I T I N S U R A N C E C O R P. JPMorgan Chase opens Hartford office Add JPMorgan Chase & Co.'s flag to the large, money-center lenders that have cho- sen to unfurl theirs in downtown Hartford. The nation's No. 1 lender, based on assets of $2.4 trillion, New York-based JPMorgan Chase recently debuted its commercial- banking office on the 17th floor of CityPlace II, 185 Asylum St., according to Steve Quinn, the bank's Connecticut marketing manager. Actually, Quinn said, JPMorgan Chase's bankers have since last fall quietly been ply- ing the Hartford region for middle-market relationships — generally family, indepen- dent or corporate enterprises with revenues between $20 million and $500 million — working out of temporary offices in the Regus Hartford Business Center at 100 Pearl St. JPMorgan has long had a Connecticut base in Shelton. "Hartford was an area where we felt we were 'undershared' … ,'' Quinn said. The bank is starting out with three full- time staffers based downtown, but eventually intends to grow that number over time, he said. Meanwhile, a rotating corps of 10 to 12 JPMorgan Chase bankers will use the CityPlace II space when they are in the area, calling on customers and prospects, said Quinn, adding he will split his time between both. Ironically, the bank's Hartford office is a stone's throw from the former Goodwin Hotel, built in the 19th century to house legendary American banker and the bank's founder, John Pierpont Morgan. — Gregory Seay

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