Webster Financial Corp. reported a 14 percent drop in its fourth-quarter profits, partly a result of an impairment charge from the Dodd-Frank Act.
The parent to Waterbury regional lender Webster Bank said its net income for the quarter was $41.1 million, or 45 cents per share, down from $47.9 million, or 52 cents per share here, in the year ago period.
The bank took a $7.3 million charge on its noninterest income, resulting in an overall decline in that revenue category of $8.6 million, or 16 percent.
Webster said the Volcker Rule, a provision of Dodd-Frank, required it to take an “other-than-temporary-impairment” charge on some of its collateralized debt and loan obligations.
Regulators have indicated recently that they may alter the rule, but a Webster spokeswoman said the bank could not delay the charge. Webster may seek to buy back the loan obligations, if regulations permit, she said.
Meanwhile, net interest income was up 5 percent for the year, at $153.9 million.
Webster’s 2013 profits were down $2.5 million, or 1.5 percent, to $168.7 million.
The bank paid more income taxes as well as higher costs for severance and contracts, and branch and facility optimization.
