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Executives at Webster Financial, Independent Bank and People's United agree that their retail operations have to change -- but the consensus stops there. Some are adding branches, some are cutting them, and they are all using new technologies in different ways.
February 27 -
As operating costs rise, a growing number of community banks are following the lead of larger rivals by shuttering branches, though analysts hope the pace of closures will accelerate.
January 30 -
Webster Financial Corp. (WBS) in Waterbury, Conn., reported solid first-quarter results thanks to a surge in commercial lending.
April 17
Webster Financial (WBS) in Waterbury, Conn., reported higher quarterly earnings but missed its earnings targets as mortgage-banking fees declined more than expected.
The $21.5 billion-asset company said in a press release Thursday that its second-quarter profit rose 3% from a year earlier, to $45.2 million. Earnings per share of 50 cents were a penny below the average estimate of analysts polled by Bloomberg.
Weaker fee income was the main culprit. Webster's noninterest income dropped 9%, to $47.7 million, as mortgage-banking income fell to $513,000 from $5.9 million. Fees for loans and wealth-management also slipped slightly.
Bright spots in the quarter included strong loan growth and expense control. Net interest income rose 5%, to $155.1 million, as total loans grew by 8%, to $13.3 billion. Growth was particularly strong in commercial loans, which increased 16%, to $4.1 billion. The net interest margin compressed by 4 basis points, to 3.23%.
Noninterest expenses fell less than 1%, to $122.6 million, while Webster's efficiency ratio improved by 72 basis points, to 59.26%. Webster announced a plan last year to overhaul its retail network by cutting branches and improving its technological offerings. Chief Executive Jim Smith said in Thursday's release that those changes have mostly been made.
