Shares of Webster Financial (NYSE:WBS) climbed more than 7% on Friday after the bank revealed a fourth-quarter profit over a year ago loss, helped by loan growth and fewer losses.
The Waterbury, Conn-based company posted net income of $25 million, or 30 cents a share, compared with a loss of $54.4 million, or 84 cents a share, in the same quarter last year, beating the Streetâ€™s view of 20 cents.
The bank posted net loan growth of $116 million, with originations up to $979 million from $644 million a year ago.
Webster reduced levels of provision for loan losses, down to $15 million compared with $25 million in the year-earlier period, however net charge-offs increased to $33.7 million from $28.7 million from the year prior.
â€śWe are pleased to report that credit metrics, profitability and other key performance metrics showed meaningful improvement in the fourth quarter,â€ť Webster CEO James C. Smith said in a statement, attributing the growth in loans to middle markets and commercial real estate.
Smith said the companyâ€™s recent $300 million repayment to the U.S. Treasury, which ends its commitment to the federal department after it accepted capital funds during the economic downturn, positions it well for future growth.