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 Street’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.

“We are pleased to report that credit metrics, profitability and other key performance metrics showed meaningful improvement in the fourth quarter,” Webster CEO James C. Smith said in a statement, attributing the growth in loans to middle markets and commercial real estate.

Smith said the company’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.