Webster Financial in Waterbury, Conn., reported higher quarterly earnings that reflected modest loan growth and higher fee income.
The $27.3 billion-asset company said in a press release Thursday that its third-quarter profit rose by 55%, to $100 million, or $1.06 a share.
The results "our organizational commitment to key strategic priorities and strong execution by our bankers," John Ciulla, Webster's president and CEO, said in the release. "Record earnings were driven by ... year-over-year revenue growth led by double-digit commercial loan growth and a 31-basis-point increase in the net interest margin."
Net interest income increased by 15%, to $200.9 million. Total loans rose by 5%, to $18.3 billion. An increase in commercial lending and commercial real estate lending offset declines in residential mortgages and consumer loans.
Total deposits increased by 5.5%, to $21.9 billion.
Noninterest income increased by 10%, to $72.3 million. Loan- and lease-related fees and deposit service fees increased. Mortgage banking fees fell by 46%.
Noninterest expenses rose by 10.5%, to $178.8 million, mostly because of higher compensation and technology costs.
Webster’s efficiency ratio fell to 57.4% from 59.2% a year earlier.
