Webster Bank sees revenue gain for 24th consecutive quarter in 3Q

WEBSTER FINANCIAL posted an increase in third-quarter earnings Thursday, even as the Waterbury-Conn.-based bank reported its 24th consecutive quarter of year-over-year revenue growth.
WEBSTER FINANCIAL posted an increase in third-quarter earnings Thursday, even as the Waterbury-Conn.-based bank reported its 24th consecutive quarter of year-over-year revenue growth.

WATERBURY, Conn. – Reporting its 24th consecutive quarter with year-over-year revenue growth, Webster Financial Corp., parent of Webster Bank NA, on Thursday announced its third-quarter earnings, which included net income of $51.5 million, a 2.1 percent increase. Earnings per diluted share increased 1 cent to 54 cents.

Total interest and non-interest income for the period ended Sept. 30 was $253.5 million, representing a 9.8 percent increase compared with same period last year. James C. Smith, chairman and CEO, attributes the growing revenue to “continued strong loan growth,” according to a statement.

Indeed, total loans increased 12.6 percent to $15.2 billion compared with the same period last year, with double-digit growth in commercial, commercial real estate, residential mortgages, while consumer loans grew 2.6 percent to $2.7 billion.

The increase in lending helped grow total assets 10.3 percent to $24.1 billion, but brought along with it a 10.5 percent increase to the bank’s accumulated allowance for loan losses, which totaled $173 million. Still, past due loans fell 10.3 percent to $41.3 million.

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Nonperforming loans increased 14.3 percent to $159 million, or 1.04 percent of total loans. At the same time a year ago, nonperforming loans accounted for 1.03 percent of all loans.

Simultaneously, deposits grew 13.1 percent to $17.6 billion compared with $15.5 billion in the same period last year.

The bank’s efficiency ratio of 59.6 percent represents the tenth consecutive quarter at or below 60 percent, according to the bank.

“Our focus on efficiency has enabled us to continue to invest meaningfully in our high-performing business segment,” said Glenn MacInnes, executive vice president and chief financial officer, in a statement.

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