Webster Financial Corp. (WBS), the holding company for Webster Bank, reported Friday a narrower loss for the fourth quarter, reflecting improved margins, lower loan loss provisions and a decrease in expenses.
For the fourth quarter, the Waterbury, Connecticut-based company's net loss available to common shareholders narrowed to $54.4 million from $307.59 million in the previous year. Loss per share for the quarter was $0.84, narrower than $5.91 per share in the year earlier.
The company noted that net loss available to common shareholders included $34 million of imputed dividends related to the Warburg Pincus investment and convertible preferred exchanges completed during the quarter.
On average, 11 analysts polled by Thomson Reuters expected the company to report a loss of $0.24 per share for the quarter. Analysts' estimates typically exclude special items.
Net interest income for the quarter increased to $130.48 million from $126.07 million in the year-ago quarter. Total non-interest income was $53.46 million, compared with a loss of $85.9 million in the previous year. Seven analysts estimated revenues of $180.11 million for the quarter.
Net interest margin improved to 3.26% from 3.18% in the third quarter of 2009.
Total interest expense for the quarter declined to $50.98 million from $82.58 million in the preceding year. Total non-interest expenses were $132.21 million, down from $304.44 million in the prior year.
Provision for credit losses declined to $67 million from $100 million in the previous year.
James Smith, chairman and chief executive officer said, "While our results do not yet reflect a return to profitability, our solid performance and improving trends are encouraging. Our recently announced lending and hiring initiatives reflect our positive outlook for continuing improvement throughout 2010."
For the full year, net loss available to common shareholders narrowed to $85.25 million or $2.14 per share from $333.9 million or $6.42 per share in the previous year. Net interest income for the year decreased to $494.6 million from $505.8 million a year ago. Total non-interest income was $187.1 million, compared to a loss of $28.0 million a year back.
Analysts expected a loss of $0.75 per share on revenues of $676.43 million for the full year.
WBS closed Thursday's regular trading at $14.4 on the NYSE.
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