Webster Financial Corp. posted a second-quarter profit that beat analysts’ estimates, as the top New England lender set aside less money for bad loans.

The Waterbury, Conn.-based company posted a net income of $17.6 million, or 16 cents a share, compared with a net loss of $31.6 million, or 65 cents a share, a year ago.

Analysts on average were expecting a profit of 7 cents a share, excluding items, according to Thomson Reuters I/B/E/S.

Provision for loan losses fell to $32 million from $85 million, while net interest income increased 11 percent to $132.3 million.

"Asset quality continued to improve in the second quarter, reflected by a lower level of non- performing loans, reduced charge-offs and a further decline in delinquency levels," CFO Jerry Plush said.

Webster shares closed at $18.82 Thursday on the New York Stock Exchange.