WATERBURY, Conn. – Webster Financial Corp., the parent of Webster Bank N.A., on Friday posted a fourth-quarter net loss of $13.7 million, a significant improvement over its $300.28 million loss in the year-earlier period.
The prior year’s fourth-quarter results had been weighed down by a $129.59 million write-down in the value of the company’s investments and a $188.87 million goodwill impairment charge.
Rhode Island's Market Has Changed. Developers, Builders, Investors and Sellers Must Change With It.
By Emilio DiSpirito IV License Partner | Engel & Völkers Oceanside Leader | The DiSpirito…
Learn More
In the quarter ended Dec. 31, the bank – Rhode Island’s ninth-biggest measured by deposits – recorded $234.92 million in interest and non-interest revenue, up 91.4 percent from the $122.75 million in the same period a year ago thanks to a much smaller write-down in investments value of $77,000.
The company’s loss per diluted share totaled 84 cents, far higher than the 24 cent per share loss forecast by a consensus of analysts who cover the bank, according to Yahoo! Finance.
When factoring in “preferred stock dividends, accretion and extinguishment gain,” Webster said its net loss to common shareholders for the quarter was $54.4 million, or 76 cents per common share.
For all of 2009, Webster said it lost $85.25 million, compared with the $333.92 million it lost in 2008.
The bank touted improving “operating fundamentals,” including a lower rate of loan delinquencies, a reduced provision for losses and lower net charge-offs.
Those charge-offs – loans that a bank doesn’t believe it will ever collect – totaled $51.8 million in the fourth quarter, down from $64.6 million in the previous three-month period.
Webster also noted its net interest margin improved to 3.26 percent in the fourth quarter from 3.18 percent in the third quarter.
“While our results do not yet reflect a return to profitability, our solid performance and improving trends are encouraging,” James C. Smith, Webster’s chairman and CEO, said in a statement. “Our recently announced lending and hiring initiatives reflect our positive outlook for continuing improvement throughout 2010.”
The fourth quarter’s $67 million loan-loss provision – money set aside for anticipated bad loans – was a 33 percent decrease from the bank’s provisions of $100 million in the fourth quarter of 2008.
