Webster Bank reports profit increase in 2Q

WEBSTER FINANCIAL Corp. reported second quarter earnings on Thursday, featuring a 9.8 percent boost in profit to $52.5 million, or 55 cents per diluted share, compared with $47.8 million, or 50 cents per diluted share, during the year-ago period.
WEBSTER FINANCIAL Corp. reported second quarter earnings on Thursday, featuring a 9.8 percent boost in profit to $52.5 million, or 55 cents per diluted share, compared with $47.8 million, or 50 cents per diluted share, during the year-ago period.

WATERBURY, Conn. – Webster Financial Corp. reported second-quarter earnings on Thursday, featuring a 9.8 percent boost in profit to $52.5 million, or 55 cents per diluted share, compared with $47.8 million, or 50 cents per diluted share, during the same year-ago period.
James C. Smith, the bank’s chairman and CEO, said Webster had “another strong quarterly performance, marked by record net income and record loan originations, led by business loans and residential mortgages.”
Loans grew 11.3 percent, or $1.5 billion, to $14.8 billion, with double-digit growth in commercial, commercial real estate and residential mortgage loans, the company said. Total assets rose 9.7 percent to $23.6 billion, boosted by the loan growth. The increase in loans did bring with it a 37.8 percent increase in the loan-loss provision to $12.8 million in the three months ended June 30.
At the same time, deposits for the parent company of Webster Bank grew 13.8 percent, or $2 billion, to $17.3 billion.
Total interest and non-interest income increased nearly 10 percent to $246.8 million, compared with $225.1 million during second quarter of 2014.
“Our balance sheet is well-positioned for the anticipated rise in interest rates as the economy continues to strengthen,” Glenn MacInnes, executive vice president and chief financial officer, said.
The bank reported a net interest margin of 3.05 percent in the second quarter, a drop from 3.19 percent a year earlier. Other posted metrics included returns on average tangible common shareholders’ equity and average common shareholders’ equity were 12.49 percent and 9.03 percent, respectively, in the period, increases from 11.51 percent and 8.53 percent, respectively.

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