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Chairman and Chief Executive Officer James Smith said quarterly results were affected by an $85 million provision for credit losses and an increase in the premium charged by the Federal Deposit Insurance Corp. that is used to insure depositors' funds.
The premium expense was $5.9 million, compared with $500,000 a year ago.
"We elected to take the same amount as last quarter," Smith said of the loan loss provision, adding that for several quarters, the bank has been setting aside reserves at levels higher than charge-offs, while waiting for credit losses to recede.
"There are some hopeful signs, for example loan delinquencies were flat for the third quarter in a row and are down 7 percent from (2008)," Smith said.
The bank also reported $426 million in deposit growth and core pre-tax, pre-provision earnings of $56.1 million.
As of Sept. 30, the bank has $13.6 billion in deposits while commercial, residential mortgage, consumer and commercial real estate loans totaled $11.3 billion.
A special shareholder meeting will be called to authorize conversion of some preferred stock shares into common shares, as part of a $115 million investment in Webster by private equity firm Warbus Pincus.
Webster holds the No. 2 position in market share in Connecticut, trailing Bank of America, according to the FDIC's latest ranking.
Outside of the state, Webster is renovating space to consolidate a headquarters and branch office in downtown Providence and plans to open a flagship location for the Greater Boston area by the end of the year.
Webster's board of directors declared a quarterly cash dividend of 1 cent per common share, payable Nov. 16 to shareholders on record as of Nov. 2.
Webster Financial Corp. has $17.5 billion in assets and 181 banking offices.
Its stock closed Thursday at $13.20 per share, up 50 cents on the New York Stock Exchange.
To see more of New Haven Register, or to subscribe to the newspaper, go to http://www.nhregister.com. Copyright (c) 2009, New Haven Register, Conn. Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
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