First Connecticut Bancorp in Farmington reported a higher quarterly profit fueled by organic balance sheet growth.
The $2.4 billion-asset company's earnings tripled from a year earlier, to $2.5 million in the third quarter. Earnings were up 14.4% from the second quarter.
Net interest income increased 20%, to $16 million primarily due to a $330 million increase in the average net loan balance. Total loans increased 19% compared to a year earlier.
The net interest margin decreased to 2.89% during the quarter, from 2.94% the prior year and 3.01% in the second quarter.
Asset quality remained stable as loan delinquencies 30 days and greater was at 0.78% of total loans, compared to 0.87% a year earlier.
Still, the company's provision for loan losses increased nearly fivefold to $1.04 million, as the company set aside more money to reflect its balance sheet growth.
Noninterest income increased 27% to $2.8 million compared to the prior year quarter primarily due to higher fees for customer services and an increase in mortgage banking gains.
Deposits increased 6%, to $1.7 billion largely due to increases in municipal deposits and noninterest-bearing deposits.