WATERBURY, Conn. – Webster Financial Corp., the parent company for Webster Bank, brought in a $382.7 million profit in 2019, an increase of 6.2%, or $22.3 million, over earnings in 2018, the company reported Thursday.
Earnings per diluted share increased from $3.81 in 2018 to $4.06 in 2019.
Year over year, revenue increased 7.6% to $1.40 billion in 2019 versus $1.3 billion in 2018.
Interest income totaled $1.2 billion, an increase from $1.1 billion one year prior. The bank also posted 6.1% increase in net interest income, the difference between interest earned on assets like loans, mortgages and securities and interest paid out to customer deposits, from $864.7 million in 2018 to $917.3 million in 2019. This was despite a 5-basis-point-decrease in the net interest margin, from 3.60% to 3.55%.
Non-interest income also increased slightly, an increase of 1% from $282.6 million in 2018 to $285.3 million in 2019.
Non-interest expense grew 1.5% to $716.0 million in 2019, compared to $705.6 million the prior year.
Average 2019 assets stood at $29.1 billion, an increase of 7.5% over the $27.0 billion in 2018. Average 2019 deposits totaled $23.0 billion, a 6.0% increase over the $21.7 billion in deposits in 2018.
Fourth-quarter profit was $90.5 million, a decline of 8.5% compared with the $98.8 million profit in quarter four 2018. Interest income increased slightly to $282 million. Non-interest decreased $2.2 million year over year to $70.9 million.
The decrease in non-interest income reflects the $4.6 million gain in 2018 when six banking centers were sold and client hedging income was lower, the company stated.
Quarterly net interest margin declined 34 basis points, from 3.66% in quarter four 2018 to 3.27% in the three months that ended Dec. 31.
“Webster’s fourth quarter results demonstrate our ongoing commitment to strong execution on our strategic priorities,” John R. Ciulla, bank president and CEO, said in a statement.
Ciulla also noted the 10% loan growth in the commercial banking and an 18% increase in its HSA Bank Division total footings.
“We’ve now achieved our tenth consecutive year of annual earnings per share growth, which puts us in select company in the banking industry,” he said.
Nancy Lavin is a PBN staff writer. Email her at Lavin@PBN.com.
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