The parent of Webster Bank posted a 7 percent increase in third quarter profits Thursday, boosted by commercial lending gains and tight control on expenses.
Waterbury-based Webster Financial Corp said net income available to common shareholders for the quarter ended Sept. 30 was $47.8 million, or 53 cents a diluted share, compared with $44.7 million, or 49 cents a diluted share, for the same period a year earlier.
The per-share results for the most recent quarter beat Wall Street estimates by a penny, in a survey of analysts by Thomson/Reuters.
Business loans and commercial real estate lending jumped more than 13 percent, about $881 million, leading all categories of lending. Overall, loan growth rose by $1 billion, more than 8 percent.
Net interest income — basically, the difference between interest earned on loans and interest paid on deposits — rose to record levels, contributing to stronger than expected revenue growth.
Webster’s long-running focus on controlling expenses made further gains in the quarter. The bank’s efficiency ratio was 58.98 percent, meaning that roughly 59 cents of every dollar earned goes to paying expenses. That compares with 60.07 percent a year ago.
“Credit quality trends remain favorable, a sign of the strengthening economy, and business confidence is on the rise,” said James C. Smith, Webster Financial’s chairman and chief executive.
Shares in Webster Financial closed at $28.48, up 83 cents, Thursday on the New York Stock Exchange.
