By Michael Souza
PBN Staff Writer
WATERBURY, Conn. – Webster Financial Corp., the holding company for Webster Bank, has announced net income available to common shareholders of $40.6 million, or $.44 per diluted share, for the quarter ended June 30 up 6 percent from $38.3 million, or $.42 per diluted share for the first quarter ended March 31.
Year over year, the bank reported a 21 percent increase in revenue during from $33.4 million, or $.36 per diluted share, during the second quarter 2011.
Total nonperforming loans in the second quarter declined to $169.2 million, or 1.47 percent of total loans when compared to $178.3 million, or 1.58 percent, on March 31, 2012.
Included in nonperforming loans were paying loans totaling $17 million on June 30 compared to $18.1 million at March 31. Also included in nonperforming loans were $4.5 million in consumer liquidating loans compared to $3.9 million on March 31.
When it came to provisions for loan losses, the bank reported a figure of $5 million in the quarter, compared to $4 million in the first quarter of 2012, and $5 million at the same time last year.
According to Webster, these numbers are reflective of continued portfolio growth and asset quality improvement.
Net charge-offs were $16.5 million in the quarter compared to $27.2 million for the first quarter and $21.7 million a year ago, a positive trend.
Commercial and commercial real estate loans were successful ventures for the bank, respectively reporting $222.6 million or 4.2 percent from March 31,, 2012, and $467.2 million or 9.2 percent from a year ago.
Growth of $176 million or 3.3 percent in transaction account deposits from March 31 and $673.5 million or 14 percent from a year ago, which represent 39.2 percent of total deposits compared to 38 percent at March 31 and 35 percent a year ago.
Webster president and COO Jerry Plush, said loan originations were 69 percent higher than a year ago and totaled over $1 billion in the quarter.
“We ended the quarter with strong loan pipelines, which should bode well for the balance of the year,” said Plush in remarks “Our emphasis on growing transaction accounts continues to pay off as demand and interest-bearing checking deposits now represent almost 40 percent of total deposits. The growth in our loan portfolio, coupled with an increase in lower cost transaction deposits, enabled us to grow net interest income in a challenging interest rate environment.”
Net interest income was stable, $144.4 million for the quarter compared to $143.4 million in the first quarter and $140.9 million on June 30, 2011.
Noninterest expense before one time costs of $123.9 million compared to $126.6 million in the first quarter and $126 million a year ago; continued achievement of positive operating leverage as core revenue grew 1 percent and core expenses declined 1.9 percent from the first quarter.
Continued improvement in asset quality was demonstrated by a 5.8 percent reduction in nonperforming assets and a 12 percent decline in commercial classified loans, both from March 31, and reductions of 30.6 percent and 36.2 percent from a year ago.
Total loans were $11.5 billion at June 30, 2012 compared to $11.3 billion at March 31, 2012 and are reflective of steady growth in commercial, commercial real estate and residential mortgages.
During the second quarter, commercial and commercial real estate loans increased by $97 million and $125.6 million, respectively.
Residential mortgage loans increased by $30.4 million while consumer loans declined by $25.2 million.