FDIC: Local banks see profit grow 38% in 2018

CITIZENS BANK N.A. reported net income of $1.39 billion as of Dec. 31, 2018, according to data released by the Federal Deposit Insurance Corp. on Thursday. / PBN FILE PHOTO/ELI SHERMAN
CITIZENS BANK N.A. reported net income of $1.39 billion as of Dec. 31, 2018, according to data released by the Federal Deposit Insurance Corp. on Thursday. / PBN FILE PHOTO/ELI SHERMAN

PROVIDENCE – More than 20 banks with branches located in Rhode Island and Bristol County, Mass., reported year-over-year increases in net income at the end of 2018 while four banks saw decreases, according to data released Thursday by the Federal Deposit Insurance Corp.

Eight banks headquartered in Rhode Island, 13 Massachusetts-based banks and six banks that have local branches but operate outside the region reported a combined net income of $34.4 billion as of Dec. 31, 2018, representing a 38 percent increase from Dec. 31, 2017.

According to the FDIC, commercial banks and savings institutions across the country reported aggregate net income of $59.1 billion in the fourth quarter of 2018, $33.8 billion more than in the prior year, mainly due to lower income-tax expenses and higher net operating revenue. For the full year, the banking industry reported $236.7 billion in net income, an increase of 44.1 percent, or $72.4 billion, from 2017.

Top three net incomes among banks based in Rhode Island:

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  • Providence-based Citizens Bank N.A., at $1.39 billion, had the largest net income for the calendar year of all the banks based in the region but had the smallest year-over-year increase at 0.3 percent.
  • Westerly-based The Washington Trust Co. had the second-highest net income in the region with $69.3 million, a 50.3 percent increase from 2017.
  • Providence-based Bank Rhode Island saw its net income rise 103.4 percent year over year to $23.6 million, the third-highest net income in the region.

West Warwick-based Centreville Bank saw a 41.6 percent decrease in net income, falling to $7.4 million. Home Loan Investment Bank F.S.B. in Warwick also saw a decline, dropping to $2.7 million in net income, a 38.4 percent decrease year over year.

Top three net incomes among banks based in Bristol County, Mass.:

  • Bristol County Savings Bank in Taunton had the largest net income of banks based in the county, at $21.4 million, a 25.7 percent boost from $17 million year over year.
  • Although BayCoast Bank in Swansea had a 19.3 percent decrease in net revenue year over year to $8.7 million, it was still the second-highest net income among banks based in the county.
  • Taunton-based Mechanics Cooperative Bank had the third-highest net income among banks based in the county, with $6.3 million, a 44.3 percent increase from $4.3 million in 2017.

Milford Federal Bank in Milford, Mass., saw its net income decrease year over year to $1.2 million from $1.6 million in 2017.

Bank of America Corp., at $29.22 billion, reported the largest net income of all the banks operating in New England as of Dec. 31, 2018, a 37.9 percent increase year over year.

James Bessette is a PBN staff writer. Email him at Research@PBN.com.