January 25, 2018

Tax charge blunts Farmington Bank’s 4Q net

HBJ file photo
HBJ file photo
First Connecticut Bancorp. Chairman, President and CEO John J. Patrick Jr.

A one-time charge related to the recent federal tax cuts lowered First Connecticut Bancorp's fourth-quarter earnings, the Farmington Bank holding company announced Wednesday.

First Connecticut reported net income of $497,000, or 3 cents per diluted share, for the quarter ended Dec. 31. That was down from $4.2 million, or 27 cents, in the year-ago quarter.

The federal tax cuts, which lowered the corporate income tax rate to 21 percent, reduced the value of the bank's deferred tax assets, resulting in an income tax charge of $5 million.

"However, the tax rate reduction will increase future earnings," the company noted in its earnings release.

Before tax expenses, the bank's earnings were up more than $2 million, at $8 million.

Compared to the fourth quarter on 2016, the bank grew its net assets by 7.4 percent, to $3.05 billion, while interest income grew from $22.2 million to $25.6 million.

For the full year, net income was $15.8 million, up from $15.2 million in 2016.

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