New Webster Bank corporate signage at a Long Island Webster branch. Photo courtesy of Webster Bank

Connecticut-based Webster Bank saw deposits increase by 2.3 percent during the first quarter.

The bank’s total deposits were $55.3 billion at the end of the first quarter, up from $54.1 billion at the end of 2022 and $54.4 billion in the first quarter of 2022.

“Webster’s financial prospects remain strong,” Glenn MacInnes, Webster’s executive vice president and chief financial officer, said in the bank’s first quarter earnings statement. “Along with core deposit growth, we took actions that provided ample liquidity and funding optionality going forward.”

Webster Financial Corp. had first quarter net income available to common stockholders of $216.8 million, or $1.24 per diluted share, compared to a net loss of $20.2 million, or a loss of $0.14 per diluted share, in the first quarter of 2022, when Webster completed its acquisition New York-based Sterling Bancorp.

The bank said in its earnings statement last week that first quarter 2023 results included $56.6 million before taxes in charges related to the merger with Sterling Bancorp on Jan. 31, 2022, as well as balance sheet repositioning.

“Webster generated solid results during a challenging time for the banking industry,” Webster CEO John R. Ciulla said in the statement. “Our diverse businesses, strong capital position, unique deposit profile, and solid risk management framework, allow our company to deliver for our clients in all operating environments.”

Webster’s total loans and leases were $50.9 billion, up from $49.8 billion at the end of 2022 and $43.5 billion in the first quarter of 2022. The bank’s commercial loans increased by $300 million during the first quarter, and commercial real estate loans increased by $900 million. The bank also saw residential mortgages increase by $38.1 million in the quarter, while consumer loans decreased by $61.2 million.

The bank’s total assets were $74.84 billion at the end of March compared to $71.27 at the end of 2022 and $65.13 in the first quarter of 2022.

Net interest income was $595.3 million in the first quarter, up year-over-year from $394.2 million. The net interest margin was 3.66 percent compared to 3.21 percent in the first quarter of 2022.

Webster’s first quarter noninterest income was $70.8 million compared to $104 million in the first quarter of 2022. The bank attributed the decrease of $33.2 million primarily to losses on the sale of securities, lower client hedging income and valuation marks, the outsourcing of its consumer investment services platform, lower client account fees, and lower prepayment and other loan related fees.