SI Financial profits soar for quarter

Willimantic - SI Financial Group Inc., parent of Savings Institute Bank and Trust, has reported a near doubling of profits for the first quarter of this year.

The bank said last week that it made $403,000 in the January-through-March period, versus $209,000 for the same quarter last year. The profit worked out to 4 cents a share, compared with 2 cents a year earlier.

A cash dividend of 3 cents a share was declared by the bank's board of directors, to be paid to shareholders of record at the close of business May 7, payable about May 29.

"The continued growth in earning assets during the quarter is particularly encouraging as it was, in a large part, due to a nearly $14 million increase in loans," said bank president and chief executive Rheo A. Brouillard in a statement.

Profits on interest rose about $200,000, accounting for much of the profit increase. But provisions for loan losses rose more than $200,000 during the quarter, primarily because of an increase in loans that weren't being paid back, and the percentage of nonperforming assets rose from 0.8 percent to 1.2 percent.

Charge-offs on loans for the quarter were only $76,000, compared with $446,000 for the same period a year ago.

The company also reported a pre-tax net loss of $486,000 on the sale of SI Trust Servicing operations during the first quarter, which provided trust outsourcing services for community banks.

l.howard@theday.com