Webster sets profit record for 2016 as loans, credit quality advance

WEBSTER FINANCIAL Corp. reported record earnings for 2016, $207.1 million compared with $204.7 million in 2015.
WEBSTER FINANCIAL Corp. reported record earnings for 2016, $207.1 million compared with $204.7 million in 2015.

WATERBURY, Conn. – Webster Financial Corp. on Thursday reported record-breaking profit for 2016 with $207.1 million, or $2.16 per diluted share, representing a 1.17 percent increase compared with 2015.

Webster Financial, the Connecticut-based holding company for Webster Bank, reported fourth-quarter profit growth of 11.3 percent to $57.7 million, or 60 cents per diluted share. Total interest and non-interest revenue for the quarter ended Dec. 31 increased 9.4 percent to $282 million, while 2016 revenue grew 8.9 percent to $1.1 billion.

James C. Smith, chairman and CEO, pointed to the company’s loan portfolio as the driving factor behind the quarterly and year-end growth.

“Record quarterly loan origination of $1.8 billion coupled with a modest increase in the net interest margin contributed to Webster’s 29th consecutive quarter of year-over-year revenue growth and our 18th consecutive quarter of double-digit, year-over-year commercial loan growth,” Smith said in prepared remarks.

- Advertisement -

Total loans and leases for the year grew 8.65 percent to $17 billion compared with $15.7 billion for 2015. The growth was fueled largely by a 13.4 percent increase in commercial loans and a 13 percent increase in commercial real estate loans, which grew to $5.58 billion and $4.51 billion, respectively. Residential mortgages grew 4.77 percent to $4.25 billion and consumer loans fell 0.69 percent to $2.68 billion.

At the same time, nonperforming loans and leases per total loans and leases fell to 0.79 percent compared with 0.89 percent in 2015. Allowance for loan and lease losses grew 11 percent to $194.3 million, or 1.14 percent of total loans and leases, compared with $175 million and 1.12 percent the year-prior.

“Our solid results showcase our sustained progress in executing sound growth strategies that maximize value for our customers and shareholders,” Smith added.

Total assets grew 5.78 percent to $26.1 billion compared with $24.6 billion the year prior.

The fourth-quarter and year-end results come one day after the bank announced it will close three bank branches in Rhode Island and one in New Bedford in April. Webster said the closures – totaling eight across its entire footprint – are due to falling demand for brick-and-mortar locations retail services with the rising popularity of mobile banking.

Total deposits, meanwhile, grew 7.53 percent to $19.3 billion for 2016.

No posts to display