STAMFORD, Conn. – Webster Financial Corp., the parent company of Webster Bank, on Tuesday reported a $181.6 million profit in the second quarter of 2024, down 22.7% from $235 million a year earlier.
The bank – which has seven locations in Rhode Island and $363.1 million in deposits in the market, according to the Federal Deposit Insurance Corp. – also reported earnings of $1.03 per share, down from the earnings per diluted share of $1.32 announced in July 2023.
The downturn represents a contrast from last year's second-quarter report, when the company reported a 28.9% year-over-year increase of $52.7 million in profit, and a diluted share increase of 32 cents year-over-year.
The lower profit for the second quarter of 2024 was at least partially caused by a $49.9 million net loss on the sale of investment securities in the three-month period. The bank did not explain the reason for the loss in its earnings filing. The bank reported a $48,000 loss in the second quarter of 2023.
The company's results didn't meet Wall Street expectations, the Associated Press reported. On average, nine analysts surveyed by Zacks Investment Research forecasted a $1.34 earnings per share for Webster in the second quarter.
Webster Bank's holding company posted a $1.018 billion revenue for the second quarter, down slightly from the $1.022 billion it brought in a year ago. At the same time, interest and noninterest expenses grew from $693.7 million to $730 million.
Jacquelyn Voghel is a PBN staff writer. You may reach her at Voghel@PBN.com.