WATERBURY, Conn. – Webster Financial Corp. on Thursday announced its first-quarter earnings, recording a year-over-year net income decline of 1.4 percent, attributable – in part – to an increase in expenses and a tax rate hike, according to the company.
In the quarter ended March 31, Webster Financial, parent of Connecticut-based Webster Bank NA, recorded net income of $49.7 million compared with $50.4 million in the same period a year earlier.
Earnings were 52 cents per diluted share compared with 53 cents per diluted share a year earlier.
The earnings drop occurred despite an 5.8 percent increase in total interest and non-interest income to $240.8 million.
The bank saw growth on a number of fronts. Total assets increased 9.1 percent to $23.1 billion, driven by a 9.9 percent climb year over year in net loans to $14.1 billion. At the same time, deposits grew 16.7 percent to $17.5 billion.
“Webster’s solid first-quarter results mark our 22nd consecutive quarter of year-over-year revenue growth, a clear reflection of our bankers’ success in serving our customers and communities,” said James C. Smith, chairman and CEO, in a statement.
Total noninterest expenses increased 7.7 percent to $134.1 million, including increases in compensation and benefits, technology and deposit insurance.
The company also recorded $24.1 million of income tax expense in the quarter, compared with $21.2 million a year earlier.
“The effective tax rate was 32.6 percent compared to 29.6 percent,” according to the bank. “The year ago reflected a $2 million net tax benefit compared to a net benefit of [$500,000] in the current quarter.”
Home Industries Financial Services Webster sees 1Q revenue growth but profit shrinks from year earlier
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