Webster reports record net income in 2015

JAMES C. Smith, chairman and CEO of Webster, lauded the bank’s record year, saying the company’s growth strategy is paying off. / COURTESY WEBSTER BANK

WATERBURY, Conn. – Webster Financial Corp. finished 2015 reporting record net income for both the fourth quarter and the year with $52.6 million, or 55 cents per diluted share, and $206.3 million, or $2.15 per diluted share, respectively.
The Connecticut-based parent company of Webster Bank also recorded its 25th consecutive quarter with year-over-year revenue growth, reporting total interest and non-interest income for the three-month period ending Dec. 31 at $258.5 million, representing a 8.8 percent increase compared with the same period last year. Total interest and non-interest income for the year totaled $999.6 million, representing an 8.5 percent increase compared with 2014. Fourth-quarter net income grew 3.1 percent to $52.6 million and 2015 net income grew 3.3 percent to $206.3 million.
James C. Smith, chairman and CEO, lauded the bank’s record year in a statement, saying the company’s growth strategy is paying off.
“Webster’s record net income for the fourth quarter and full year 2015 showcase our sustained progress in executing growth strategies that maximize value to customers and shareholders,” Smith said. “Record quarterly loan originations and net interest margin expansion helped produce our 25th consecutive quarter of year-over-year core revenue growth.”
Indeed, total loans and leases increased 12.7 percent to $15.7 billion compared with $13.9 billion in 2014. The growth was aided by double-digit growth in commercial, commercial real estate and residential mortgages.

At the same time, allowance for loan and lease losses grew to $175 million compared with $159.3 million in 2014. The allowance for loan losses represents 1.12 percent of total loans compared to 1.15 percent during the same period in 2014.

It also represents 125 percent of nonperforming loans compared with 123 percent in 2014. Total nonperforming loans decreased to $139.9 million, or 0.89 percent of total loans, compared with $129 million, or 0.93 percent, in 2014.
“We’ve now achieved eleven consecutive quarters with the efficiency ratio at or below 60 percent,” said Glenn MacInnes, executive vice president and chief financial officer. “We’ve accomplished this even as we continue to invest in our future.”
Total assets grew 9.5 percent to $24.7 billion compared with $22.5 billion a year earlier. Total deposits also grew 14.7 percent to $18 million, which the bank attributes primarily to its January 2015 acquisition of HSA Bank.

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