WATERBURY, Conn. – With its 30th consecutive quarter of year-over-year revenue growth, Webster Financial Corp. on Friday reported first-quarter profit growing 26.4 percent to $59.5 million, or 62 cents per diluted share, compared with $47 million, or 49 cents per diluted share, a year earlier.
The parent company of Webster Bank reported total interest and noninterest income growing 6.8 percent to $282.7 million, boosted by loan growth through its subsidiary, HSA Bank, and transactional account deposit growth, according to James C. Smith, chairman and CEO.
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“Our 30th consecutive quarter of year-over-year revenue growth benefited from rising interest rates,” he said in a statement. “The solid results reflect sustained progress in executing sound growth strategies that maximize value for customers and shareholders.”
Total loans and leases grew 7.8 percent to $17.1 billion compared with $15.9 billion a year earlier. The Connecticut-based bank grew loans in commercial, commercial real estate and residential mortgages, offset slightly by a decline in consumer lending. Total interest income grew 8.6 percent to $219.7 million compared with the prior year. The growth came largely from a 12 percent increase in interest and fees on loans and leases, which totaled $167.8 million.
At the same time, nonperforming loans and leases grew 23.5 percent to $173.8 million, fueled largely by nonperforming commercial, nonmortgage loans and leases more than doubling to $74.5 million. Allowance for loan and lease losses grew to $199.1 million compared with $174.2 million a year earlier.
Webster’s net interest margin grew to 3.22 percent compared with 3.11 percent a year earlier.
“We are beginning to realize the transformational benefits of our balance sheet management strategies as evidence by the 11 basis point increase in the net interest margin,” said Glenn MacInnes, executive vice president and chief financial officer, in a statement.
Fee-based business related to deposit services, lending and wealth and investment services helped grow total noninterest income 1.1 percent to $63 million. The growth, however, was offset by noninterest expense growing 7.4 percent to $163.8 million. The increase was driven by growth in such costs as compensation, technology and equipment and outside services.
Total deposits grew 8.1 percent to $20.2 billion. Total assets grew 4.3 percent to $26 billion.
