Webster reports Q4, 2017 profit growth

WEBSTER FINANCIAL CORP. is the parent company of Webster Bank, which is based in Connecticut. The company saw its 33rd consecutive quarter of year-over-year revenue growth in the fourth quarter of 2017. / PBN FILE PHOTO
WEBSTER FINANCIAL CORP. is the parent company of Webster Bank, which is based in Connecticut. The company saw its 33rd consecutive quarter of year-over-year revenue growth in the fourth quarter of 2017. / PBN FILE PHOTO

PROVIDENCE – Webster Financial Corp. on Tuesday reported 2017 profit increased 23.3 percent to $255.4 million, or $2.67 per diluted share, compared with $207.1 million, or $2.16 per diluted share, a year earlier.

The Waterbury, Conn.-based parent of Webster Bank reported fourth-quarter profit increased 21.2 percent to $69.9 million, or 73 cents per diluted share, compared with $57.7 million, or 60 cents per diluted share, a year earlier.

John Ciulla, who recently became the company’s president and CEO, lauded its performance, saying total revenue exceeded $1 billion for the first time in bank history.

“We are pleased to report that our earnings have exceeded our cost of capital for the third consecutive quarter,” he said in prepared remarks.

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Total interest and noninterest income for 2017 grew 8 percent to $1.2 billion compared with 2016. Total interest and noninterest income for the quarter ended Dec. 31 grew 7.1 percent year-over-year to $302.2 million.

The quarterly growth marks the 33rd consecutive quarter of year-over-year revenue growth.

The bank’s net interest margin grew to 3.33 percent compared with  3.11 a year earlier.

“These achievements were driven by the quality and dedication of our bankers,” Ciulla said.

The performance was also driven by robust interest-income growth, specifically on the interest and fees realized on loans and leases. Total interest income for 2017 grew 11.1 percent to $913.6 million.

At the same time, total loans and leases grew 2.9 percent to $17.5 billion. Allowance for loans and leases as a percentage of total loans and leases remained flat at 1.14 percent. Total assets for Webster grew 1.6 percent to $26.5 billion.

Noninterest income, meanwhile, fell 1.9 percent to $259.5 million compared with 2016.  Labor costs and technology and equipment costs largely drove increases in expenses.

Total deposits grew 8.8 percent to $21 billion compared with $19.3 billion a year earlier. The growth was largely thanks to significant increases in certificates of deposits and health-savings accounts.

Webster is the parent company of HSA Bank, a health savings account administrator based in Wisconsin.

“Our balance sheet structure continues to provide a competitive advantage,” said Glenn MacInnes, executive vice president and chief financial officer. “Webster’s strong capital position, ample liquidity and business momentum position us well for future growth.”

Eli Sherman is a PBN staff writer. Email him at Sherman@PBN.com, or follow him on Twitter @Eli_Sherman.

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