It’s the end of an era at Webster Bank, which announced Thursday that James C. Smith, son of the Waterbury-based bank’s founder, will retire this spring after more than 30 years in leadership roles.
Smith, 71, has been non-executive chairman of the bank’s parent company, Webster Financial Corp., since retiring as CEO two years ago. He had been the bank’s president from 1987 to 1995, when he was named CEO.
His father, the late Harold Webster Smith, founded First Federal Savings of Waterbury in 1935, which was renamed after him when he retired in 1995.
John R. Ciulla, 54, who succeeded James Smith as CEO in 2018, will assume Smith’s chairman role at the company’s 2020 shareholder meeting in April.
In a statement, Smith called Ciulla a “principled leader” who has “ably demonstrated his leadership skills, strategic acumen and responsible stewardship of the values that define Webster.”
“As I conclude my service to this great company, I celebrate its future knowing that Webster is in excellent hands,” said Smith, who first started working for the bank in 1975.
Bill Atwell, lead independent director of Webster’s board, said Smith’s contributions were “significant and noteworthy.”
“His impeccable career as Chairman and CEO has led Webster to be recognized as a leading mid-size bank in the country,” Atwell said.
Webster Financial had $30.39 billion in total assets as of Dec. 31. The bank has 157 branches and offices across southern New England and New York with the bulk of them, 112, in Connecticut.
Webster is currently the second-largest Connecticut-based bank by deposits.
Since retiring from his CEO role in early 2018, Smith has stepped up his civic involvement. He co-led the state’s Commission on Fiscal Stability and Economic Growth with Robert Patricelli, and weighed a run for governor.
Early last year, Gov. Ned Lamont named Smith co-chair of a reorganized board of directors at the Connecticut Economic Resource Center, along with former PepsiCo CEO Indra Nooyi.
Smith won a Hartford Business Journal Lifetime Achievement Award in 2012.
Higher expenses push down Webster’s 4Q profits
Along with its chairman announcement Thursday, Webster Financial also reported that its fourth-quarter profits fell 8.9 percent, due in part to rising expenses.
The company booked $88.1 million in profit, or 96 cents per diluted share, for the three months ended Dec. 31, down from $96.7 million, or $1.05 per share, in fourth quarter of 2018.
Net interest income fell by just over 2 percent, to $231.3 million, as higher interest and fee income was outpaced by a larger increase in deposits and loans.
Besides those interest expenses, non-interest expenses also rose, due to higher compensation and benefits and investments in technology and equipment.
In addition, non-interest income fell due to a $4.6 million gain on the sale of six banking centers in the year-ago quarter.
Total deposits grew to $23.3 million, up from $21.9 billion a year ago.
Webster’s share price was up at Thursday’s stock market open, at $51.74 per share, compared to a Wednesday closing price of $51.61.
