Webster Financial net income up slightly

Published on NewsOK Modified: October 11, 2013 at 7:54 am •  Published: October 11, 2013
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WATERBURY, Conn. (AP) — Webster Financial's third-quarter net income rose slightly, meeting analyst expectations, as growing business loans helped offset a decline in mortgage refinancing.

The parent company for Webster Bank earned $44.7 million, or 49 cents per share, for the quarter that ended Sept. 30. That was up from $44.4 million, or 48 cents per share, during the 2012 third quarter.

Analysts, on average, expected 49 cents per share, according to FactSet.

Deposits rose 4 percent, while commercial and commercial real estate loans increased 14.4 percent.

The company said it saw a "significant reduction" in mortgage banking, causing a $5.9 million decline in mortgage banking activities compared with a year earlier as mortgage refinancing dropped. Interest rates on mortgages rose during the quarter, discouraging people from refinancing.

Net interest income, or earnings from deposits and loans, rose to $150 million, from $144.9 million last year. Provision for loan losses, the money set aside to cover loans it couldn't collect, rose to $8.5 million, from $5 million a year ago.

Noninterest income, or earnings from fees and service charges, fell to $46.3 million, from $48.5 million, mainly due a sharp drop in mortgage banking.

Net charge-offs, or loans written off as uncollectable, dropped to $14.4 million, from $17.7 million a year ago.

Webster Financial Corp. shares closed Thursday at $25.79, up more than 25 percent since the start of the year.