People's United and Webster banks report strong 4th-quarter, 2012 earnings [New Haven Register, Conn.]New Haven Register, Conn.McClatchy-Tribune Information Services
Jan. 19--Two of the state's largest banks, People's United and Webster, are reporting strong fourth-quarter and full-year 2012 earnings.
Bridgeport-based People's United Financial saw its earnings for the final three months of 2012 jump by nearly 48 percent compared to the same period in 2011. Fourth quarter 2012 earnings growth at Webster Financial Corp. came in at 21 percent higher than the same period a year earlier.
People's United reported its earnings after the close of trading on U.S. financial markets on Thursday, while Webster issued its reporting before trading began on Friday.
Both banks had full-year earnings growth for 2012, with People's United seeing a 27.4 percent increase in 2012 over the year before while Webster's profits grew by 15.6 percent.
Webster saw its 2012 earnings increase by $23.2 million, or 26 cents per share, to $171.2 million, or $1.86 per share.
People's United's 2012 earnings were $245.3 million, or 72 cents per share, an increase of $52.9 million, or 17 cents per share, from 2011.
"Our performance throughout 2012 continues to build on the execution of our primary objectives -- optimizing existing businesses and efficiently deploying capital," Jack Barnes, People's United's president and chief executive officer, said in a written statement. "We are encouraged by continued strong loan and deposit growth within our legacy franchise and as a result of the strategic revenue initiatives undertaken during the past year. In particular, mortgage warehouse lending, asset-based lending, New York commercial real estate and equipment finance, contributed to total loan growth of $1.4 billion during 2012."
James Smith, chairman and chief executive officer for Waterbury-based Webster, said the bank's fourth quarter results set a record.
"Loan originations rose 40 percent in the fourth quarter from a year ago and 46 percent for the full year to set a new record, and our loans to businesses now comprise more than half of our total loan portfolio," Smith said in a written statement. "Webster's solid capital position and earnings momentum will enable us to return capital to our shareholders over time by gradually increasing the dividend payout ratio and repurchasing additional common shares. We are deeper, stronger, and able to meet our customers' financial needs better than ever before."
Shares of Webster's stock, which trade under the ticker symbol WBS on the New York Stock Exchange, closed at $22.30 on Friday, up 46 cents from the day before. People's United stock lost 32 cents on Friday to close at $12.39 on the NASDAQ exchange, where it trades under the ticker symbol PBCT.
Call Luther Turmelle at 203-789-5706.
(c)2013 the New Haven Register (New Haven, Conn.)
Visit the New Haven Register (New Haven, Conn.) at www.nhregister.com
Distributed by MCT Information Services