Webster Financial Corporation (WBS) has reported an 11.29 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $57.66 million, or $0.60 a share in the quarter, compared with $51.81 million, or $0.54 a share for the same period last year.
Revenue during the quarter grew 11.02 percent to $243.38 million from $219.22 million in the previous year period. Net interest income for the quarter rose 6.88 percent over the prior year period to $185.26 million. Non-interest income for the quarter rose 18.33 percent over the last year period to $70.62 million.
Webster Financial Corporation has made provision of $12.50 million for loan losses during the quarter, down 9.42 percent from $13.80 million in the same period last year.
Net interest margin improved 3 basis points to 3.11 percent in the quarter from 3.08 percent in the last year period. Efficiency ratio for the quarter deteriorated to 63.13 percent from 60.30 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
"I am pleased to report that Webster finished its best year ever with a strong fourth quarter. Record quarterly loan originations of $1.8 billion coupled with a modest increase in the net interest margin contributed to Webster's 29th consecutive quarter of year-over-year revenue growth and our 18th consecutive quarter of double-digit year-over-year commercial loan growth," said James C. Smith, chairman and chief executive officer. "Credit quality remains strong with net charge-offs on loans at their lowest level in nearly a decade. Our solid results showcase our sustained progress in executing sound growth strategies that maximize value for our customers and shareholders."
Liabilities outpace assets growth
Total assets stood at $26,064.66 million as on Dec. 31, 2016, up 5.78 percent compared with $24,641.12 million on Dec. 31, 2015. On the other hand, total liabilities stood at $23,537.65 million as on Dec. 31, 2016, up 5.90 percent from $22,227.16 million on Dec. 31, 2015.
Loans outpace deposit growth
Net loans stood at $16,832.27 million as on Dec. 31, 2016, up 8.62 percent compared with $15,496.74 million on Dec. 31, 2015. Deposits stood at $19,303.86 million as on Dec. 31, 2016, up 7.53 percent compared with $17,952.78 million on Dec. 31, 2015.
Investments stood at $7,151.75 million as on Dec. 31, 2016, up 3.53 percent or $244.07 million from year-ago. Shareholders equity stood at $2,527.01 million as on Dec. 31, 2016, up 4.61 percent or $111.44 million from year-ago.
Return on average assets moved up 4 basis points to 0.89 percent in the quarter from 0.85 percent in the last year period. At the same time, return on average equity increased 59 basis points to 9.26 percent in the quarter from 8.67 percent in the last year period.
Credit quality improves
Webster Financial Corp recorded an improvement in credit quality during the quarter. Nonperforming assets moved down 4.85 percent or $7.02 million to $137.95 million on Dec. 31, 2016 from $144.97 million on Dec. 31, 2015. Nonperforming assets to total loans was 0.81 percent in the quarter, down from 0.92 percent in the last year period. Equity to assets ratio was 9.70 percent for the quarter, down from 9.80 percent for the previous year quarter. Book value per share was $26.17 for the quarter, up 4.72 percent or $1.18 compared to $24.99 for the same period last year.
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