Webster Financial Corp. narrowed its losses and beat Wall Street expectations in the first quarter, showing some signs of recovery as the regional lender put aside less money to cover bad loans.
The Waterbury parent of Webster Bank posted a $6.1 million loss, or 8 cents a share, for the quarter ended March 31, down from a loss of $21.6 million, or 41 cents a share, a year ago.
The bank said nonperforming loans declined 6.5 percent in the quarter, to $348.8 million, which helped boost its earnings from a year ago.
The bank also set aside $43 million during the quarter to cover bad loans, down from $67 million in the year ago period.
Analysts polled by Thomson Reuters expected a loss of 12 cents a share.
Webster Bank received a $400 million federal bailout in 2008, but has begun a repayment plan to the federal government.
Webster shares were up 3 cents to $20.70 in late morning trading Thursday.
