Webster Financial Corp., the holding company for Waterbury, Conn.-headquartered Webster Bank that has branches in Massachusetts, today announced a 12.4 percent increase in its net income to $46.3 billion for the quarter ended June 30, compared with $41.2 billion for the same time last year.
Net income available to common shareholders totaled $43.7 million, or 48 cents per diluted share, compared with $40.6 million, or 44 cents per diluted share, for last year’s second quarter.
The company also reported a 15.1 percent, or $837.3 million, increase growth in commercial and commercial real estate loans from the same time period a year ago.
The company reported continued improvement in asset quality as evidenced by a reduction of $155 million, or 34.8 percent, in commercial classified loans from a year ago, while past due loans declined $16 million, or 24.4 percent, from a year ago. Nonperforming assets increased $16.9 million, or 9.7 percent, from a year ago and otherwise would have decreased by $26 million, or 14.9 percent, had $42.9 million of residential and consumer loans not been required to be classified as nonaccrual under regulatory guidance that took effect in the fourth quarter of 2012.
Net interest margin was 3.23 percent compared to 3.32 percent a year ago. The yield on interest earning assets declined 27 basis points, and the cost of funds declined 19 basis points from the year ago quarter.
The company recorded a provision for loan losses of $8.5 million in the second quarter of 2013 compared with $7.5 million in the first quarter of 2013 and $5 million in the year ago period.
Net charge-offs were $12.9 million in the quarter compared with $16.8 in the first quarter of 2013 and $16.5 million in the year ago period. The ratio of net charge-offs to average loans on an annualized basis was 0.43 percent in the quarter compared with 0.58 percent a year ago. The allowance for loan losses represented 1.33 percent of total loans at June 30 compared to 1.4 percent at March 31 and 1.72 percent at June 30, 2012.
