Profits rose at Webster Financial (WBS) in Waterbury, Conn., on strong fee income and cost controls.
The $20.3 billion-asset company's earnings rose 8% from a year earlier, to $43.7 million. Earnings per share of 48 cents beat the average estimates of analysts polled by Bloomberg by a penny.
Noninterest income rose 10% from a year earlier, to $52.3 million, on higher fee income. Deposit-service fees rose 4% from the second quarter of 2012, to $24.6 million, and mortgage fees rose 62%, to $5.9 million.
Webster's net interest income rose 2% from a year earlier, to $147.1 million, because of a 24% reduction in interest expense. Total loans rose 6% from a year earlier, to $12.2 billion. The net interest margin compressed by 9 basis points compared with the second quarter of 2012, to 3.23%.
The company's noninterest expenses fell by 1% from a year earlier, to $122.7 million. The loan-loss provision was $1 million higher than in the second quarter of 2012, at $8.5 million.
In May the private-equity firm Warburg Pincus sold a stake in Webster worth nearly $208 million.