Waterbury regional bank giant Webster Financial Corp. posted higher second quarter earnings, driven by strong commercial lending and fewer writeoffs of uncollectible debts.
For three months ended June 30, Webster Bank’s parent and one of New England’s biggest lenders said Friday it netted $40.6 million, or 44 cents a fully diluted common share, up from $33.4 million, or 36 cents a share, netted the same period a year ago.
Combined growth in commercial business and real estate loans rose 9.2 percent from June 30 a year ago, to $467.2 million as of the latest quarter, the bank said.
But rising loan volume also translates to increased problem assets.
Past due loans rose to $65.9 million at June 30 from $60 million at March 31.
Webster wrote off its books bad loans and foreclosed property totaling $16.5 million in the latest quarter, down from $21.7 million in charge-offs a year ago.
Total nonperforming loans declined to $169.2 million, or 1.47 percent of total loans, at June 30 vs. $178.3 million, or 1.58 percent, at March 31. Nonperformings of 10 percent or greater usually prove fatal to a lender.
