Updated April 25 at 4:56pm

Webster sees 109% increase on ’10 profit

WATERBURY, Conn. – Displaying continuing signs of a recovering economy, Webster Financial Corp., parent of Webster Bank, reported net income last week of $151.4 million for 2011, a 109 percent increase on its 2010 profit. More

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Banking

Webster sees 109% increase on ’10 profit

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WATERBURY, Conn. – Displaying continuing signs of a recovering economy, Webster Financial Corp., parent of Webster Bank, reported net income last week of $151.4 million for 2011, a 109 percent increase on its 2010 profit.

With a decline of 3.6 percent in total interest and noninterest revenue, to $876.8 million, for the year, the bank was able to book a larger profit by taking advantage of the low interest rate environment to pay less on deposits, as well as the improving quality of its loan portfolio, for which it took $22.5 million in provision for loan losses, a steep drop from the $115 million it took in 2010.

Webster reported earnings per diluted share of $1.61, a sharp increase from the 57 cents per diluted share that the bank posted in 2010.

Low interest rates helped the bank, as interest expense totaled $136 million for 2011, a significant drop from $171.4 million in 2010 and $250.7 million in 2009.

Continued improvement in asset quality was reflected by a 36 percent reduction in nonperforming assets and a 34 percent decline in commercial classified loans over the course of the year.

Total nonperforming loans continued to decline throughout the year. The nonperforming amount at the end of the year was $188.1 million, compared with $221.0 million as of Sept. 30, and $273,573 as reported for Dec. 31, 2010. •

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