Webster Financial Q3 Profit Edges Up, Matches View

(RTTNews) - Webster Financial Corp. (WBS), the holding company for Webster Bank, N.A., on Friday reported a slight increase in profit for the third quarter from last year, reflecting higher net interest income and lower expenses that was partly offset by a higher provision for loan losses. Earnings per share matched analysts' expectations.

James Smith, chairman and chief executive officer of Webster Financial said, "Robust commercial loan growth, favorable asset quality trends, and continued tight expense control combined to produce solid operating results for the quarter despite the sharp slowdown in residential mortgage refinance activity. Notable milestones in the quarter included record net interest income once again and stellar performance in our health savings account business whose footings crossed $2 billion."

The company's net income available to shareholders for the third quarter increased to $44.67 million or $0.49 per share from $44.38 million or $0.48 per share in the previous-year period. On average, 16 analysts polled by Thomson Reuters expected the company to earn $0.49 per share for the quarter. Analysts' estimates typically exclude special items.

Net interest income rose 4 percent to $150.00 million from $144.89 million in the same quarter last year. Total non-interest income declined 5 percent to $46.26 million from $48.48 million in the year-ago period. Analysts had a consensus revenue estimate for the quarter of $149.73 million.

Net interest margin was 3.23 percent, compared to 3.28 percent in the prior-year period. Total non-interest expense decreased to $122.28 million from $123.89 million a year ago.

The company recorded a provision for loan losses totaling $8.50 million, higher than $5.00 million in the year-ago period.

WBS closed Thursday's regular trading at $25.79, up $0.60 on a volume of 622,200 shares.