Webster Financial reports Q3 loss

Webster Financial Corp. today posted a $26.1 million, or 39 cents a share, net loss available to common shareholders for the third quarter, due largely to an increase in provision for credit losses.

The consolidated net loss for the Waterbury-based parent of Webster Bank was $19.2 million, compared to $16.5 million in the year ago period.

Analysts had predicted a loss of 24 cents a share, according to Thomson Reuters.

Despite the losses, Webster chairman and CEO James Smith said capital levels at the bank continue to improve and are well in excess of all regulatory requirements.

"We saw significant improvement in the net interest margin, loan delinquencies were flat for the third consecutive quarter, and overall performance was solid considering the challenging environment," Smith said.

Webster set aside $85 million as a reserve to cover expected credit losses and charged off $64.6 million in bad loans.

Webster also received $40 million in the quarter from New York-based private-equity firm Warburg Pincus, which agreed in July to invest a total of $115 million in the bank.

That deal was finalized earlier this month.