WATURBURY, Conn – Webster Financial Corp. on Thursday reported first-quarter profit grew 34.9 percent to $80.2 million, or 85 cents per diluted share, compared to $59.5 million, or 62 cents per diluted share, a year earlier.
The parent of Webster Bank reported total interest and noninterest income increased 11.3 percent to $314.7 million for the quarter ended March 31 compared to $282.7 million during the first quarter of 2017.
“Webster’s first-quarter results demonstrate the meaningful progress we are making on the execution of our strategic priorities,” said John Ciulla, president and CEO of the Connecticut company.
Total loans and leases grew 4.2 percent to $17.8 billion compared to $17.1 billion a year earlier. The growth was fueled by an 11.3 percent increase in commercial loans, which totaled $6.2 billion for the quarter. The growth helped offset a slight decline in consumer loans, as commercial real estate loans and residential mortgages both realized modest growth.
“Our loan portfolio yield is 40 basis points higher than a year ago as 52 percent of our loans reprice in 30 days or less,” said Glenn MacInnes, executive vice president and chief financial officer.
Allowance for loan and lease losses grew to $205.3 million compared to $199.1 million a year earlier. Webster’s net interest margin grew to 3.44 percent compared to 3.22 percent a year earlier.
“Our ongoing balance sheet transformation is producing tangible results,” McInnes added.
Interest and fees on loans and leases helped grow total interest income 11.9 percent to $245.9 million, offset by a slight increase in expenses, which totaled $31.8 million. Fees on deposit services and wealth management and investment services helped grow noninterest income 9 percent to $68.7 million.
Total deposits grew 5.6 percent to $21.4 billion. Total assets grew 2.9 percent to $26.8 billion.
“Revenue growth, continuing investment and effective risk management are enabling Webster to produce increasing levels of economic profit,” Ciulla said.