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Webster reports lower 3Q profit due to selling factoring ops, securities

Webster Financial in Stamford, Conn., reported lower quarterly profit after it sold more underwater securities, incurred restructuring expenses and divested its factoring operations.

The $79.5 billion-asset company said in a press release that its third-quarter earnings fell by 15% from a year earlier, to $188.8 million.

Webster reported a $19.6 million pretax net loss from selling investment securities. The company also recorded a $9.8 million loss from selling securities in the first quarter.

The company said it incurred $20.6 million in pretax expenses tied to strategic restructuring costs and $16 million in pretax expenses from exiting noncore businesses.

Webster said that the strategic restructuring costs included $7 million tied to compensation and benefits, $9 million tied to technology and equipment, $2.6 million from professional and outside services.

 SLR Investment announced late last month that it bought Webster’s factoring business, along with $115 million of loans.

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