Waterbury’s Webster Financial Corp. reported a market-beating profit for the fourth straight quarter as the top New England lender set aside less money to cover bad loans.

Net income available to common shareholders for the January-March quarter was $33.5 million or 36 cents a share, compared with a loss of $6.1 million, or 8 cents, in the previous year.

Analysts, on average, expected the company to earn 29 cents a share, according to Thomson Reuters I/B/E/S.

"Higher earnings for the quarter were driven primarily by further improvement in asset quality along with a higher net interest margin and higher level of interest-earning assets, including growth in business lending," Chief Executive James Smith said in a statement.

Provision for loan losses fell 77 percent to $10 million in while net interest income rose 6 percent to $139.5 million.

Total non-performing loans were $261.9 million, or 2.38 percent of total loans, at March 31, 2011, compared to $273.6 million, or 2.48 percent, at Dec. 31, 2010.

Shares of the company, closed at $21.23 Thursday on the New York Stock Exchange. The stock has fallen by less than a percent since the company reported strong third-quarter results in mid January.