Webster Financial Corp. in Waterbury, Conn., on Friday said second-quarter earnings declined 24.2% from a year earlier.
The $17.7 billion-asset company had net income of $12.7 million for the quarter, dropping from $16.8 million. It reported net income of $6.6 million for the first six months, compared with a loss of $4.7 million a year earlier.
Webster reduced its second-quarter loan-loss provision by 59%, to $32 million from $85 million a year earlier, and from $75 million in the first quarter. It lowered net chargeoffs to $35.9 million from $43 million in the year-earlier period. Total nonperforming loans were $317.3 million, or 2.92% of total loans, compared with $348.8 million, or 3.20%, at March 31.
"Our results signal clearly that the regional economy is slowly recovering," the company's chief executive, James C. Smith, said in a press release. "Loan originations increased 46% in the quarter and the pipeline is strong as we fulfill our pledge to help finance the economic recovery."
At June 30, Webster had a total risk-based capital ratio of 14.7% and a Tier 1 capital ratio of 12.85%.
