Webster Bank Reports Second-quarter Earnings
WATERBURY, Conn. — Webster Financial Corp., the holding company for Webster Bank, N.A., announced earnings applicable to common shareholders of $48.4 million, or $0.53 per diluted share, for the quarter ended June 30, 2016, compared to $49.8 million, or $0.55 per diluted share, for the quarter ended June 30, 2015. The second quarter of 2015 included a $3.7 million net tax benefit, or $0.04 per diluted share.
“Double-digit loan growth once again propelled strong revenue growth as Webster bankers continued to excel in service to businesses and consumers,” said James Smith, chairman and CEO. “Loan originations in excess of $1 billion, coupled with exceptionally strong credit metrics, helped overcome margin pressure from today’s historically low interest-rate environment to produce another solid quarter.”
Highlights for the second quarter of 2016 compared to the second quarter of 2015 included revenue of $242.0 million, an increase of 8.6%, including a record level of net interest income of $176.9 million; loan growth of $1.5 billion, or 10.1%, with growth of $1.1 billion in commercial and commercial real-estate loans; deposit growth of $1.5 billion, or 8.9%, with growth of $1.1 billion in transactional and health savings account deposits; efficiency ratio (non-GAAP) of 61.47%; and annualized return on average tangible common shareholders’ equity (non-GAAP) of 11.25%.
“Ongoing strategic investments in our businesses, along with continued expense discipline, are designed to maximize shareholder value over time,” said Glenn MacInnes, executive vice president and chief financial officer.