Regional lender Webster Financial Corp. in Waterbury posted a narrower quarterly loss, helped partly by lower provision for credit losses and rise in net interest margin, Reuters reports.
Meanwhile, its larger cross-state rival, savings and loan holding company People’s United Financial Inc. in Bridgeport, reported a 26 percent fall in fourth-quarter earnings, hurt by lower net interest income, and increased loan loss provisions, Reuters reported
In Waterbury, the parent of Webster Bank said it’s net loss applicable to common shareholders was $54.4 million, or 76 cents a share for the fourth quarter, compared with a loss of $307.6 million, or $5.91 a share, a year earlier.
Analysts on average were looking for a loss of 25 cents a share, according to Thomson Reuters I/B/E/S.
Webster set aside $67 million as provision for credit losses during the period, an increase from $100 million a year back.
Net interest income rose to $63.5 million from $26.1 million during the quarter, Reuters reported.
Net interest margin — the difference between what the bank earns on loans and pays on deposits — increased 6 basis points to 3.26 percent.
Webster has $17.7 billion in assets.
At Peoples United, the company said quarterly net profit was $24.9 million, or 7 cents a share, compared with $33.7 million, or 10 cents a share, a year earlier.
Excluding items, net income would have been $28 million, or 8 cents a share, People’s United said in a statement, according to Reuters.
Analysts on average were looking for a profit of 8 cents a share, before items, according to Thomson Reuters I/B/E/S.
Net interest income fell 4 percent to $147.5 million.
Non-performing loans totaled $168.8 million, with the ratio of non-performing loans to total loans at 1.19 percent, as on Dec. 31, the company said.
The S&P 500 Index .SPX component said provision for loan losses for the fourth quarter was $13.6 million, up from $8.7 million last year, Reuters reports.
People’s United, which agreed to buy Financial Federal Corp. for about $738 million in November, said it expects to complete the transaction by mid-February.
People’s United has $21.1 billion in assets.
