Waterbury-based Webster Financial Corp., the holding company for Webster Bank N.A., reported a fourth-quarter net income gain of 8 percent.
Net income totaled $47.9 million for the period ended Dec. 31, compared with $39.6 million in the same period a year earlier and $44.4 million as of Sept. 30.
Combined growth in commercial and commercial real estate loans of $339.4 million helped drive fourth-quarter growth.
Webster also noted continued improvement in asset quality, with a 7.2 percent reduction in commercial classified loans from Sept. 30 through Dec. 31, 2012, down 35 percent for the full year.
Assets totaled $253 million as of Dec. 31, compared with $196 million at the end of 2011.
"Our record fourth quarter results cap a year of strong performance for Webster," Chairman and Chief Executive Officer James C. Smith said in a statement. "Core net income reached an all-time high in the fourth quarter. Loan originations rose 40 percent in the fourth quarter from a year ago and 46 percent for the full year to set a new record, and our loans to businesses now comprise more than half of our total loan portfolio. Webster’s solid capital position and earnings momentum will enable us to return capital to our shareholders over time by gradually increasing the dividend payout ratio and repurchasing additional common shares."
Net interest income was $146.3 million for the quarter, compared with $144.9 million in the third quarter.
Net interest margin was 3.27 percent compared to 3.28 percent in the third quarter as the yield on interest-earning assets declined four basis points and the cost of funds declined three basis points.
Webster President and Chief Operating Officer Jerry Plush added in a statement that other significant business achievements in the quarter include the completion of an upgrade to Webster’s ATM network to envelope-free, image-capture technology and the rollout of its mobile app.
In Connecticut, Webster opened a new retail office in Simsbury, and completed a new retail and private banking office in Greenwich.
Webster Bank has more than 181 branches in Connecticut, Massachusetts, Rhode Island and New York.
