Webster Financial in Waterbury, Conn., reported lower first-quarter profit as costs from adding personnel and an acquisition weighed on results.
The $23.1 billion-asset company's net income fell 1% to $47.1 million, from a year earlier. Earnings per share were 52 cents, below the 54-cent average estimate of analysts polled by Bloomberg.
Noninterest expense rose 8% to $134 million. Compensation and benefits expenses rose $4.5 million as Webster hired new employees. The company also spent an additional $4.2 million on technology and equipment associated with its acquisition of JPMorgan Chase's health savings account business.
Net interest income rose 3% to $159.8 million. The net interest margin fell 16 basis points to 3.1%.
Noninterest income rose 16% to $57.9 million. Much of the increase came from a $7.9 million increase in deposit service fees, $6.7 million of which stemmed from its acquisition of HSA accounts.