Commercial Record photo / file
Following its merger with New York-based Sterling National Bank to start 2022, Webster Bank ended the year with earnings of more than $628 million.
Stamford-based Webster Financial Corp. had full-year net income available to common stockholders of $628.36 million, or $3.72 per diluted share, compared to $400.99 million, or $4.42 per diluted share, in 2021, before the acquisition of Sterling Bancorp.
The bank’s fourth quarter net income available to common stockholders was $240.6 million, or $1.38 per diluted share, compared to $109.1 million, or $1.20 per diluted share, in the fourth quarter of 2021. The bank said in its earnings statement last week that the fourth quarter 2022 results included $50.4 million in merger-related charges, as well as balance sheet repositioning.
“With a continued focus on our clients, colleagues, and communities, we are pleased to report strong financial results in the quarter and for the full-year 2022,” John R. Ciulla, Webster’s president and CEO, said in the fourth quarter earnings statement. “As pleased as we are with our financial performance, we are equally proud of the progress we have made from a culture and talent perspective.”
The bank’s fourth quarter net interest income was $602.4 million compared to $226.8 million in the fourth quarter of 2021. The net interest margin was 3.74 percent compared to 2.73 percent in the fourth quarter of 2021. The yield on interest-earning assets increased by 176 basis points, and the cost of interest-bearing liabilities increased by 80 basis points year-over-year.
Non-interest expenses totaled $348.4 million compared to $189.9 million in the fourth quarter of 2021. Expenses included a net $45.9 million of merger and strategic initiatives charges, compared to a net $13.7 million of merger, strategic initiative and debt prepayment charges a year ago.
Total loans and leases were $49.8 billion, compared to $47.8 billion at the end of the third quarter and $22.3 billion at the end of 2021 before the merger. Compared to a year ago, commercial loans and leases increased by $11.9 billion, while commercial real estate loans increased by $13 billion. Residential mortgages were up by $2.6 billion, and consumer loans increased by $18.2 million.
During the fourth quarter, commercial loans and leases increased by $900 million from the end of the third quarter, while commercial real estate loans increased by $800 million. The bank also saw an increase from the third quarter in residential mortgages of $300 million, while consumer loans decreased by $35.3 million.
Total deposits were $54.1 billion, compared to $54 billion on Sept. 30 and $29.8 billion on Dec. 31, 2021.
Webster Bank now has $71.27 billion in assets, up from $69.05 billion at the end of the third quarter and $34.91 billion at the end of 2021.
