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Two Connecticut stock banks saw earnings, loans and deposits increase in the third quarter, while seeing the number of loans requiring COVID-19-related modifications decline.
New Canaan-based Bankwell had third quarter net income of $3 million, or $0.38 per share, compared to $1.2 million, or $0.16 per share, in the second quarter and $4.1 million, or $0.52 per share, in the third quarter of 2019.
“I am grateful for the commitment and dedication of our team as we have made steady progress in the midst of the ongoing pandemic. Our balance sheet remains strong and credit metrics continue to improve,” Bankwell Financial Group’s president and CEO, Christopher R. Gruseke, said in a statement.
Gruseke said loans with COVID-19-related deferrals have decreased from approximately 22 percent of outstanding loans to under 4 percent. He added that core business accounts had increased by $176 million year to date, including a 23 percent increase in noninterest-bearing deposits.
Bankwell’s total deposits were $1.8 billion at the end of the third quarter compared $1.5 billion at the end of 2019. In addition to efforts to gather commercial core deposits, the bank attributed deposit growth to a temporary increase in short-term time deposits, expanding balance sheet liquidity during the pandemic.
The bank had total assets of $2.2 billion on Sept. 30, up from $1.9 billion on Dec. 31, primarily due to an increase in cash and cash equivalents to maintain a higher level of liquidity during the COVID-19 pandemic, the bank said. Gross loans totaled $1.6 billion at the end of the third quarter, an increase of $20.2 million compared to Dec. 31.
Paycheck Protection Program loans totaled $56.7 million at the end of the third quarter, with forgiveness applications completed on approximately $11.3 million of these loans.
Lakeville-based Salisbury Bank had third quarter net income of $4.3 million, or $1.53 per common share, for the compared to $2.7 million, or $0.96 per common share, for the second quarter and $2.9 million, or $1.06 per common share, for the third quarter of 2019.
“I am extremely proud of our Salisbury Bank team, which has successfully met the challenges of serving our customers and communities during these difficult times,” Salisbury’s President and CEO, Richard Cantele Jr., said in a statement. “During this pandemic we extended $100 million in PPP loans and worked with numerous commercial and residential customers to accommodate their needs for temporary loan payment deferrals. Our efforts have assisted the economic survival of our customers.”
Salisbury Bank had total assets of $2.2 billion on Sept. 30, up from $1.9 billion on Dec. 31. Gross loans for third quarter 2020 were $1.0 billion, including $99.9 million in PPP loans.
Salisbury had implemented a loan payment deferral program for residential, commercial and consumer borrowers affected by the COVID-19 pandemic to defer loan payments for up to three months and apply for additional deferments. As of Sept. 30, loan payments were deferred on 21 residential and consumer loans for $7 million loan balance and 37 commercial loans representing $56 million.
Salisbury’s deposits of $1.1 billion had increased by $9.5 million since June 30 and $129 million from Sept. 30, 2019.
