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Webster Financial Q3 NIM posts 12-basis-point decline YOY

Waterbury, Conn.-based Webster Financial Corp. reported third-quarter earnings applicable to common shareholders of $91.4 million, or $1.00 per share, down from $97.5 million, or $1.06 per share, in the year-ago period.

The S&P Global Market Intelligence consensus GAAP EPS estimate for the quarter was $1.01.

Net interest margin for the third quarter stood at 3.49%, a decrease from 3.63% in the previous quarter and 3.61% in the year-ago period. Webster attributed 5 basis points of the NIM reduction from the third quarter of 2018 to balance sheet repositioning.

Net interest income for the quarter grew on a year-over-year basis to $240.5 million from $230.4 million, but noninterest income posted a slight decrease to $69.9 million from $72.3 million. The company attributed the decline to a $2.5 million decrease in loan-related fees and a $1.9 million decline in other income, primarily related to client-hedging income.

Provision for loan and lease losses was $11.3 million, a slight increase from $10.5 million in the third quarter of 2018. Net charge-offs also grew on a year-over-year basis to $13.8 million from $6.0 million.

Total loans and leases at the end of the third quarter were $19.55 billion, compared with $19.27 billion in the previous quarter and $18.32 billion in the year-ago period.

Total deposits at the end of the quarter were $23.28 billion, compared with $22.60 billion in the previous quarter and $22.00 billion in the year-ago period.