Webster Financial in Waterbury, Conn., reported a higher third-quarter profit on growth in deposit and loan fees related to its acquisition of health savings accounts.
The $24.1 billion-asset company's net income rose 3.6%, to $49.5 million.
Noninterest income jumped 20.8%%, to $61.5 million, largely because of an added $8.7 million in deposit service fees, most of which were related to Webster’s acquisition of HSA Bank, as well as $2.8 million in added loan-related fees.
Net interest income increased 6.7%, to $168 million, as total loans rose 12.6% to $15.2 billion. The net interest margin fell 13 basis points to 3.04%.
Noninterest expense grew 12.4%, to $139.9 million. The increase stemmed from a 38% uptick in technology-and-equipment costs as well as a 9.8% increase in compensation and benefits. Webster’s efficiency ratio worsened to 59.55%, from 58.91%.