About one-quarter of Connecticut-based banks reported earnings gains in the second quarter after almost all of the state’s banks had seen positive earnings at the same time last year, according to FDIC data.

The FDIC’s latest state banking performance summary showed that Connecticut’s 31 FDIC-insured institutions together had $271 million in net income in the first half of 2022. The second quarter data reflects People’s United Bank’s April 1 merger into Buffalo-based M&T Bank. People’s United had once been the largest Connecticut-based bank.

Fewer Connecticut banks reported earnings gains in the first six months of the year compared to the first six months of 2021. About 26 percent of banks reported having net income compared to 94 percent in the first half of 2021.

While most banks are still considered profitable, 12.9 percent of institutions are now considered unprofitable. Last year all Connecticut banks were classified as profitable on June 30.

FDIC Acting Chairman Martin Gruenberg said in a statement announcing the latest FDIC Quarterly Banking Profile that the decline in income for the nation’s largest banks was tied to increases in loan provisions, while community banks saw lower net income due to higher compensation for employees.

Gruenberg did find reasons to be optimistic about the quarterly results.

“The banking industry reported generally positive results this quarter, amid continued economic uncertainty,” Gruenberg said. “Loan growth strengthened, net interest income grew, and most asset quality measures improved. Further, the industry remains well-capitalized and highly liquid.”

The net interest margin at Connecticut institutions was 3.27 percent at the end of the second quarter, compared to 2.84 percent in the first half of 2021.

Connecticut institutions have seen an increase in the yield on earning assets. The collective yield on earning assets was 3.43 percent at the end of the second quarter compared to 3.04 percent in the first half of 2021. The first quarter of 2022 yield on earnings assets was 3.03 percent.

Total loans and leases in the second quarter were $70.78 billion. The total loans and leases on March 31, which included People’s United Bank’s loans, were $103.77 billion.

The state’s banks had $85.6 billion in deposits at the end of the second quarter compared to $140.5 billion at the end of the first quarter. In addition to still including People’s United, first quarter results also reflected Webster Bank’s February acquisition of New York-based Sterling National Bank.

Nationwide, deposits decreased 1.9 percent from the first quarter.

Total assets at the state’s institutions were $105.76 billion in the second quarter compared to $166.2 billion on March 31.

Connecticut institutions had 8,623 full-time equivalent employees in the second quarter.

Gruenberg in his statement said that the banking industry continued to face risks.

“These risks include the effects of high inflation, rapidly rising market interest rates, and continued geopolitical uncertainty,” Gruenberg said. “Taken together, these risks may reduce profitability, weaken credit quality and capital, and limit loan growth in coming quarters. Furthermore, higher market interest rates have led to continued growth in unrealized losses in the banking industry’s securities portfolios. Higher interest rates may also erode real estate and other asset values as well as hamper borrowers’ loan repayment ability.”

Gruenberg added that these matters would receive ongoing FDIC supervisory attention.