Webster reports 7.4% revenue jump in 3Q, slight profit hike

WEBSTER FINANCIAL Corp. reported third quarter earnings on Friday; it said profit grew 0.87 percent to $51.8 million, or 54 cents per share, compared with $51.4 million, or 53 cents per share, for the same period last year.
WEBSTER FINANCIAL Corp. reported third quarter earnings on Friday; it said profit grew 0.87 percent to $51.8 million, or 54 cents per share, compared with $51.4 million, or 53 cents per share, for the same period last year.

WATERBURY, Conn. – Webster Financial Corp. on Friday reported third quarter profit growing 0.87 percent to $51.8 million, or 54 cents per share, compared with $51.4 million, or 53 cents per share, for the same period last year.
The parent company of Connecticut-based Webster Bank reported revenue growing 7.4 percent to $272.1 million for the quarter ending Sept. 30.
“Strong commercial loan growth, an increase in the net interest margin and sold growth in noninterest income produced Webster’s 28th consecutive quarter of year-over-year revenue growth and solid earnings,” said James C. Smith, chairman and CEO, in prepared remarks.
The bank realized strong noninterest growth of 8.35 percent totaling $83.1 million, fueled largely by loan and lease-related fees and mortgage banking activities. That growth, however, was offset by an 11.5 percent increase in noninterest expenses, fueled largely by a 13.5 percent increase in compensation and benefits, which totaled $83.1 million for the quarter. Interest income grew 7.14 percent to $205.7 million, thanks largely to income and fees on loans and leases, offset slightly by a year-over-year decrease in interest and dividends on securities. The company’s net interest margin grew 6 points to 3.1 percent.
Total loans and leases totaled $16.6 billion, representing a 9.25 percent increase compared with the prior year quarter. The company realized year-over-year gains in all categories of loans and leases. Allowance for loan and leases losses to total loans and leases fell 1 point to 1.13 percent. Nonperforming loans and leases to total loans and leases also decreased 27 points to 0.77 percent. Nonperforming assets fell 19.5 percent to $132.3 million.
Total assets grew 6.77 percent to $25.6 billion. Deposits grew 9.2 percent to $19.2 billion.

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