Waterbury-based Webster Financial posted strong first quarter earnings Friday, beating Wall Street expectations as improved asset quality boosted the company’s bottom line.
The parent company of Webster Bank said it netted $33.5 million, or 36 cents per share, for the first quarter ending March 31, compared to a $6.1 million, or 8 cents per share, loss a year earlier.
Wall Street estimated per share earnings of 29 cents, according to a survey of analysts by Thomson Reuters.
“Webster’s operating performance continues to improve,” said Webster chairman and CEO James C. Smith. Higher earnings for the quarter were driven primarily by further improvement in asset quality along with a higher net interest margin and higher level of interest-earning assets, including growth in business lending. The growth in deposits reflects our focus on expanding relationships in multiple lines of business.”
During the quarter, Webster Bank set aside less money for bad loans, an indicator of improving credit quality within the bank’s loan portfolio. The company reduced its provision for loan losses to $10 million compared to $43 million a year earlier.
The company’s net interest margin, or the difference between what the bank earns on loans and pays on deposits, also improved in the quarter helping to drive the improved earnings.
