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Two of Connecticut’s publicly traded stock banks have reported record net income for 2021.
New Canaan-based Bankwell had full-year 2021 net income of $26.6 million, or $3.36 per share, compared to $5.9 million, or $0.75 per share, in 2020.
Bankwell also had record quarterly earnings for the third straight quarter, with fourth quarter net income of $7.8 million, or $0.99 per share, compared to $300,000, or $0.04 per share, for the fourth quarter of 2020.
The company’s shareholder dividend will increase by 11 percent compared to the previous quarter, with the board of directors declaring a $0.20 per share cash dividend.
Bankwell President and CEO Christopher Gruseke said in the fourth quarter earnings statement that the bank had generating a 14 percent return on average equity in 2021, adding that the company had “made significant strides in all aspects of its business.”
“I offer my heartfelt gratitude and sincere congratulations to every member of our team,” Gruseke said. “Their hard work and commitment, during a time of historic disruption, has made these impressive achievements possible. We enter the year ahead with confidence and momentum and look forward to another outstanding year.”
He added that loan and deposit pipelines remain strong. Bankwell in 2021 originated approximately $800 million in loans, while continuing to diversify its asset base, Grueske said. Core deposits grew by 31.7 percent in 2021, and noninterest-bearing deposits increased by 47.6 percent.
The bank at the end of 2021 had total gross loans of $1.9 billion, total deposits of $2.1 billion and $2.46 billion in total assets.
Lakeville-based Salisbury Bank and Trust Co. also saw record 2021 earnings as its parent company increased the shareholder dividend.
Salisbury had 2021 net income available to common shareholders of $16.2 million, or $5.77 per basic common share, compared to $11.8 million, or $4.21 per basic common share, in 2020.
Fourth quarter net income available to common shareholders was $4.1 million, or $1.45 per basic common share, compared to $2.8 million, or $0.99 per basic common share, in the fourth quarter of 2020.
The quarterly shareholder dividend will increase by 3.2 percent compared to the previous quarter, with the board of directors declaring a $0.32 per share cash dividend.
“Although COVID-19 challenged us again in 2021, we reported record earnings for the third year in a row and our credit metrics continue to improve due to the dedication and hard work of our employees,” Salisbury’s President and CEO Richard Cantele Jr. said in the fourth quarter earnings statement. “In 2021, we also processed nearly $50 million of additional loan applications under the Paycheck Protection Program (PPP), bringing the total loan volume since the inception of this program to almost $150 million. As we enter the new year, we are cautiously optimistic that the business environment will remain favorable and we are focused on driving disciplined growth across our markets.”
Cantele added that the bank this month hired a third commercial lender as part of its strategy.
“Salisbury Bank is well-positioned to meet the needs of our customers, and our employees remain committed to providing outstanding customer service,” Cantele said.
The bank at the end of 2021 had gross loans totaling $1.1 billion, up 3.7 percent from the end of 2020. Total deposits were $1.3 billion on Dec. 30, up 18.3 percent year-over-year. The bank had total assets of $1.5 billion.
