Webster Financial in Waterbury, Conn., reported second-quarter profit of $50.5 million, a 12% jump from a year ago, as mortgage banking revenue improved.
The $23.6 billion-asset company's net income of
Net interest income rose 5.4% to $163.5 million. Total loans rose 11% to $14.8 billion; commercial and industrial lending, Webster's largest category, rose 12.3% to $4.6 billion. The net interest margin compressed 14 basis points to 3.05%.
Noninterest income rose 26% to $59.9 million; mortgage banking revenue rose to $2.5 million from $513,000. Webster was also buoyed by higher deposit service fees, largely from its November acquisition of JPMorgan Chase's
Noninterest expense rose 12% to $137.4 million due to higher costs associated with employee compensation, technology and equipment. The efficiency ratio worsened by 73 basis points to 59.94%.
