WATERBURY, Conn. – Webster Financial Corp., the parent company for Webster Bank, reported a $69.3 million profit in the third quarter, the company announced on Thursday.
Year over year, quarterly earnings decreased 26.2%, which resulted in part from the near-doubling of quarterly provisions for credit losses. The $22.8 million allocated for losses from bad loans in quarter three reflects continued impact of the pandemic, as well as new federal reporting standards adopted at the start of the year, the company stated.
Seifert Systems Invests in Energy Efficiency to Strengthen Operations
For manufacturers, energy is more than just another operating expense. It plays a critical role…
Learn More
Quarterly earnings per diluted share dropped year-over-year by 25 cents to 75 cents.
Total quarterly revenue totaled $313.3 million, a 13.7% year-over-year decrease, reflecting lower income from interest and fees on loans and leases, partially offset by an increase in non-interest income.
The bank’s non-interest income increased 7.3% year over year to $75.1 million, driven by a $5 million or 100% increase in “other” income, reflecting a $5 million-jump in mortgage banking activities, along with a $3.7 million-increase in fee income through its Health Savings Account bank driven by third-party administrator fees, and a $1.9 million-boost in income from customer derivatives. These gains were partially offset by decreases in deposit service and loan-related fees.
Net interest income, the difference between interest earned on assets like loans, mortgages and securities and interest paid out to customer deposits, totaled $219.3 million, an 8.8% decrease over a year ago.
Net interest margin, the difference between interest income generated versus the amount of interest paid out to lenders, declined 61 basis points to 2.88%.
Noninterest expenses ticked up 2.3% year over year to $184 million, including a $5.4 million-increase in employee compensation and benefits.
Total assets stood at $32.9 billion, an 11.4% year-over-year increase driven by growth in commercial loans. Loans through the Paycheck Protection Program accounted for $1.4 billion of the $1.6 billion-growth in commercial loans, with total quarterly loans ending at $21.9 billion.
Quarterly deposits totaled $26.9 billion, a 15.4% year-over-year increase, driven by growth in demand and HSA bank deposits.
“Proactively working with our customers, payment deferral accommodations have declined from almost $1.4 billion at June 30 to less than $500 million at September 30,” Glenn MacInnes, executive vice president and chief financial officer, said in a statement. “Webster’s capital and liquidity strength has enabled us to continue to support our customers and assist in the broader financial recovery.”
Nancy Lavin is a PBN staff writer. You may reach her at Lavin@PBN.com.
