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Growth in revenue, commercial loans drive Webster Financial's Q3 profit

Waterbury, Conn.-based Webster Financial Corp. reported third-quarter earnings applicable to common shareholders of $97.5 million, or $1.06 per share, compared to $62.4 million, or 67 cents per share, a year earlier.

Adjusting for $2.9 million connected with the final accrual for deposit insurance assessments for periods prior to 2018, and $8.5 million of discrete tax benefits specific to the quarter, EPS would have been 98 cents.

The S&P Global Market Intelligence consensus mean estimate for third-quarter GAAP EPS was 95 cents.

Webster Financial President and CEO John Ciulla said the results were driven by year-over-year growth in revenue and commercial loans, as well as an increase in net interest margin.

Revenue went up 13.5% to $302.7 million. Net interest margin was up 31 basis points to 3.61%. Commercial loans and leases went up to $6.69 billion from $5.92 billion a year ago.

Total loans and leases recorded were $18.32 billion, up from $18.03 billion in the previous quarter and up from $17.45 billion in 2017.

Deposits totaled $22.0 billion, compared to $21.34 billion in the linked quarter and $20.86 billion a year ago.

By segment, the commercial banking division posted operating revenue of $109.6 million, up from $95.1 million in 2017. The community banking division's operating revenue rose to $128.8 million from $123.9 million. The health savings account bank division posted an increase in operating revenue to $58.9 million from $46.1 million. The number of health savings accounts grew to 2,702 from 2,416 a year ago.