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The coronavirus pandemic had an early effect on Connecticut’s FDIC-insured banks, with first quarter earnings falling while total assets, loans and deposits saw some increases.

According to the FDIC’s Quarterly Banking Profile for the first quarter of 2019, Connecticut’s 35 FDIC-insured institutions together held $94.188 billion in deposits, a 3 percent increase over the fourth quarter and a 4.1 percent increase year-over-year.

Bank earnings fell, with only 14.29 percent of institutions reporting earning gains compared to 57.14 percent at the end of 2019 and 68.42 percent on March 31, 2019.

FDIC Chair Jelena McWilliams said in a statement that increases in loan loss provisions had negatively affected banks in the U.S., while also noting that the banking industry during the economic downturn “has proven to be a source of strength for the economy.”

“Although bank earnings were negatively affected by increases in loan loss provisions, banks effectively supported individuals and businesses during this downturn through lending and other critical financial services,” McWilliams said. “Loans and deposit inflows increased dramatically, reflecting drawdowns on corporate lines of credits and the flight to liquid assets during the market volatility. Notwithstanding these disruptions, at the end of the first quarter, bank capital and liquidity levels remain strong, asset quality metrics are stable, and the number of ‘problem banks’ remains near historic lows.”

She added that the low interest rate environment and the economic downturn would “present challenges to the industry over the near to mid-term.”

Connecticut’s percent of unprofitable institutions rose from 2.86 percent at the end of 2019 to 34.29 percent in the first quarter.

The net income for the state’s FDIC-insured institutions was $161 million in the first quarter, less than half the net income of $326 million in the same period last year. Net interest margin was 3.17 percent in the first quarter, compared to 3.33 percent on Dec. 31 and 3.37 percent on March 31.

Connecticut’s FDIC-insured institutions saw a collective 3.90 percent yield on all earning assets in the first quarter, down from 4.23 percent at the end of 2019 and 4.28 percent on March 31, 2019.

While earnings fell, total assets, loans and deposits showed how banks responded to consumers and businesses affected by the pandemic.

Connecticut’s FDIC-insured institutions together had total assets of $122.801 billion on March 31 compared to $118.834 billion on Dec. 31 and $114.641 billion at the end of the first quarter last year.

Total loans and leases were $88.401 billion, up from $87.188 billion at the end of last year and $83.992 billion in the first quarter last year.

Deposits grew from $91.433 billion at the end of 2019 to $94.188 billion in the first quarter. Bankers in recent months have attributed deposit growth to government aid payments, less spending during the economic shutdown and Paycheck Protection Program loans.

The number of full-time-equivalent employees in the 35 institutions fell slightly from 14,345 on Dec. 31 to 14,201 on March 31.