Webster Financial Corp., the holding company for Webster Bank, posted a quarterly profit that beat analysts’ estimates, as the top New England-based lender reported expanded net interest margins and set aside less money for bad loans.

Net income available to common shareholders was $17.8 million, or 22 cents a share for the third quarter, compared with a loss of $26.1 million, or 39 cents a share, a year earlier.

Analysts were looking for a profit of 17-cents a share, according to Thomson Reuters I/B/E/S.

Webster, which has a presence in the Bay State, set aside $25 million as provision for loan losses during the period, a decrease from $32 million a year back.

Net interest margin – the difference between what banks earn on loans and pay on deposits – increased 9 basis points to 3.36 percent.

Shares of the Waterbury, Conn.-based company, which gained 51 percent so far this year, closed at $17.98 Thursday on the New York Stock Exchange.

"We are pleased to report higher earnings for the third quarter. Our operating fundamentals remained strong and credit trends showed further improvement. Expansion in the net interest margin was a key contributor to our performance, and we continued to build core deposit balances," said Webster Chairman and Chief Executive Officer James C. Smith. "The origination of $644 million in loans during the third quarter, which was up 11 percent from last quarter, shows our success in helping finance the economic recovery in our markets."