Webster Financial Q2 Profit Rises, Meets Estimates - Update

(RTTNews) - Webster Financial Corp. (WBS), the holding company for Webster Bank, N.A., Friday reported a higher profit for its second quarter, as net interest income increased and expenses declined from last year. Quarterly earnings per share met analysts' expectations.

James Smith, chairman and chief executive officer of the company said, "Core revenue growth exceeded 5% as net interest income reached its highest level ever, and expenses declined year over year. Looking ahead, our loan pipeline remains strong and is a positive indicator for the region's economic prospects."

The company noted that its quarterly performance was marked by higher loan originations, strong revenue growth, further gains in operating efficiency and improved asset quality.

Net income available to shareholders increased to $43.73 million or $0.48 per share from $40.63 million or $0.44 per share in the previous year. On average, 16 analysts polled by Thomson Reuters expected the company to earn $0.48 per share for the quarter. Analysts' estimates typically exclude special items.

Net interest income improved to $147.06 million from $144.38 million in the same quarter last year. Total non-interest income was $52.25 million, higher than $47.35 million a year earlier. Analysts expected revenue of $147.84 million for the quarter.

Net interest margin was 3.23 percent, compared to 3.32 percent in the prior year. Total non-interest expense decreased to $123.60 million from $127.18 million a year ago.

The company recorded a provision for loan losses totaling $8.5 million, higher than $5.0 million in the preceding year.

WBS closed Thursday's regular trading at $26.43 on the NYSE.