WATERBURY, Conn. – Webster Financial Corp. on Friday reported record-breaking, second-quarter profit of $61.6 million, or 64 cents per diluted share, a 21.7 percent increased compared with $50.6 million, or 53 cents per diluted share a year earlier.
Total interest and noninterest income for the quarter ended June 30 grew 8.9 percent to $291.3 million – a new record – compared with $267.5 million a year earlier.
James C. Smith, chairman and CEO, lauded the performance in prepared remarks.
“Webster again reported solid business and financial performance, with record levels of net interest income and pre-provision net revenue resulting in record net income, and earnings per share growth of over 20 percent from a year ago,” he said.
The Waterbury, Conn.-based parent of Webster Bank realized strong revenue growth thanks largely to a 14.6 percent increase in interest and fees on loans and leases, which totaled $174.5 million. The growth was fueled by an increase in commercial non-mortgage and commercial real estate loans and leases.
Interest income totaled $226.8 million for the quarter.
Total loans and leases for Webster increased 6.2 percent to $17.3 billion. Total assets grew 4.2 percent to $26.2 billion compared with the same period a year earlier.
Total noninterest income, meanwhile, fell 0.8 percent to $64.6 million compared with a year earlier. The bank said the reduction was primarily due to a fall in revenue realized from client hedging activity.
Total deposits grew 8.7 percent to $20.5 billion, which together with loan growth helped fuel a 22 basis point increase to the bank’s yield on earning assets, according to Glenn MacInnes, executive vice president and chief financial officer.
“This resulted in the net interest margin increasing 19 basis points, which contributed to record total revenue in the quarter,” he said.
Indeed, net interest margin increased to 3.27 percent compared with 3.08 percent a year earlier.
“Our investments in strategic growth initiatives are producing positive results for shareholders as Webster bankers excel in service to our customers and communities,” Smith added.
Eli Sherman is a PBN staff writer. Email him at Sherman@PBN.com, or follow him on Twitter @Eli_Sherman.
