Webster Financial Corp. swung to a third-quarter loss of $16.8 million, or 42 cents a share, from a $35 million profit a year earlier.
The Waterbury, Conn., company had recorded a loss of $28.9 million, or 56 cents a share, for the second quarter.
In its third-quarter report Tuesday, Webster cited steep investment and loan losses. It took a special charge of about 59 cents a share, most of which went to cover a writedown on securities losses, and it tripled its loan-loss provision from a year earlier, to $45.5 million. Excluding the charge, Webster reported a profit of 17 cents a share. Analysts on average had expected a profit of 22 cents a share, excluding charges, according to Thomson Reuters.
Noninterest income dropped 69%, to $15.7 million, mostly because of the securities losses, Webster said. Excluding charges, noninterest income was flat at $51.3 million. Net interest income inched up 1.7%, to $129.2 million.
