Webster Financial in Waterbury, Conn., reported an increase in quarterly profit on the strength of its loan growth.
The $21.8 billion-asset company earned $50.5 million in the third quarter, up 7% over the same period in 2013, it announced Thursday. Earnings per share were 53 cents, beating the expectations of analysts polled by Bloomberg by 1 cent.
Net interest income grew 5%, to $157.4 million, as total loans grew 9%, to $13.5 billion. Most of that growth was in the commercial and commercial real estate sectors, which grew 14% and 13%, respectively. Webster's provision for loan losses rose by $1 million, to $9.5 million.
Noninterest income increased 10%, to $51 million, as mortgage-banking revenue nearly tripled, to $1.8 million. Deposit service fees also ticked up 5%, to $26.5 million.
Webster's overhead expenses rose 4%, to $125.1 million, as compensation costs and technology and equipment costs increased. Its efficiency ratio improved by 109 basis points, to 58.98%.
Webster agreed last month to buy JPMorgan's health-savings account business for an undisclosed price.