Webster Bank: solid loan growth drives first-quarter earnings

Webster Financial Corp., the parent of Webster Bank, reported combined growth in commercial and commercial real estate loans of more than $820 million, or 15.5 percent, for the year ended March 31.

The Waterbury bank reported first quarter earnings of $39.2 million, or 44 cents per diluted share, up about 5 percent from the first quarter of 2012, when the bank earned 42 cents per share. The first quarter mark missed analysts’ consensus projection for earnings of 46 cents per share.

While Webster Bank’s total loan portfolio was unchanged from the end of the fourth quarter at $12 billion, loans rose 6 percent from $11.3 billion for the year ended March 31. That growth was driven primarily by commercial loans and commercial real estate loans, which increased by $457.5 million and $365.2 million, respectively.

Webster Bank reported deposits grew 4.9 percent to $679.4 million over the past year.

“Webster’s first quarter results delivered a solid 16 percent increase in core pre-tax, pre-provision net earnings from a year ago,” said James C. Smith, chairman and CEO of Webster Bank and Webster Financial, in a prepared statement. “Core revenue grew and expenses dropped, creating positive operating leverage of 6 percent compared to a year ago.

“Loans grew by 6 percent from a year ago, led by another double-digit increase in the commercial portfolio as we continued to help lead the region’s economic recovery.”