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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________________________________________________________ ______________________________________________________________________________FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2025 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ____ to ___ ...

Webster Financial (WBS) reported first-quarter 2025 earnings per share (EPS) of $1.30, which lagged the Zacks Consensus Estimate of $1.38. Nonetheless, the reported figure compared favorably with EPS of $1.23 reported a year ago.Results were affected by higher non-interest expenses and provisions, along with lower non-interest income. Nonetheless, a rise in net interest income (NII) and higher loan and deposit balances supported the results to some extent.Net income applicable to common shareholders (GAAP b ...

Webster Financial (WBS) Q1 2025 Earnings Call April 24, 2025 09:07 PM ET Company Participants Emlen Harmon - Director of Investor RelationsJohn Ciulla - Chairman & CEONeal Holland - EVP & CFOAndrew Leischner - Assistant Vice President - Equity ResearchJared Shaw - Managing DirectorMark Fitzgibbon - Head of FSG ResearchLuis Massiani - President & COOMatthew Breese - Managing DirectorTimur Braziler - Director - Mid-Cap Bank Equity ResearchDaniel Tamayo - Vice PresidentJon Arfstrom - Managing Director - Associ ...

Webster Financial Corporation (NYSE:WBS) Q1 2025 Earnings Conference Call April 24, 2025 9:00 AM ET Company Participants Emlen Harmon - Director, IR John Ciulla - CEO Neal Holland - CFO Luis Massiani - President and Chief Operating Officer Conference Call Participants Andrew Leischner - KBW Jared Shaw - Barclays Mark Fitzgibbon - Piper Sandler Matthew Breese - Stephens Casey Haire - Autonomous Research Timur Braziler - Wells Fargo Manan Gosalia - Morgan Stanley Bernard Von Gizycki - Deutsche Bank Daniel Tam ...

Core Insights - Webster Financial (WBS) reported revenue of $704.8 million for the quarter ended March 2025, reflecting a year-over-year increase of 5.7% but falling short of the Zacks Consensus Estimate of $714.9 million by -1.41% [1] - The earnings per share (EPS) for the quarter was $1.30, a decrease from $1.35 in the same quarter last year, and below the consensus estimate of $1.38, resulting in an EPS surprise of -5.80% [1] Financial Performance Metrics - Net Interest Margin was reported at 3.5%, exceeding the five-analyst average estimate of 3.4% [4] - The Efficiency Ratio stood at 45.8%, better than the average estimate of 48.3% from five analysts [4] - Net charge-offs as a percentage of average loans and leases (annualized) were 0.4%, slightly above the average estimate of 0.3% [4] - Average balance of Total interest-earning assets was $72.85 billion, surpassing the estimate of $71.90 billion [4] - Total nonperforming loans and leases amounted to $564.40 million, higher than the average estimate of $481.93 million [4] - Total Non-Interest Income was $92.61 million, slightly below the average estimate of $93.68 million [4] - Net Interest Income reported was $612.19 million, compared to the estimate of $616.12 million [4] - Wealth and investment services income was $7.79 million, below the average estimate of $8.53 million [4] - Loan and lease related fees totaled $17.62 million, lower than the average estimate of $19.09 million [4] - Deposit service fees were $38.90 million, compared to the average estimate of $40.48 million [4] - Increase in cash surrender value of life insurance policies was $7.99 million, exceeding the estimate of $7.28 million [4] - Non-interest income from Other income was $20.09 million, above the average estimate of $19.17 million [4] Stock Performance - Webster Financial's shares have returned -9.8% over the past month, compared to a -5.1% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Viewpoint - Webster Financial (WBS) reported quarterly earnings of $1.30 per share, missing the Zacks Consensus Estimate of $1.38 per share, representing an earnings surprise of -5.80% [1][2] Financial Performance - The company posted revenues of $704.8 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 1.41%, compared to year-ago revenues of $667.09 million [2] - Over the last four quarters, Webster Financial has surpassed consensus EPS estimates only once [2] Stock Performance - Webster Financial shares have declined approximately 14.6% since the beginning of the year, while the S&P 500 has decreased by 8.6% [3] - The current consensus EPS estimate for the upcoming quarter is $1.44 on revenues of $721.62 million, and for the current fiscal year, it is $5.75 on revenues of $2.89 billion [7] Industry Outlook - The Zacks Industry Rank for Banks - Northeast is currently in the top 22% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - The performance of Webster Financial may be influenced by the overall industry outlook, as empirical research shows a strong correlation between near-term stock movements and earnings estimate revisions [5][8]

Financial Performance - Net income applicable to common stockholders for Q1 2025 was $220.4 million, or $1.30 per diluted share, compared to $210.1 million, or $1.23 per diluted share in Q1 2024, representing a 5.6% increase in earnings per share [3]. - Total revenue for Q1 2025 was $704.8 million, with net interest income of $612.2 million, up from $567.7 million in Q1 2024, indicating an increase of 7.7% [5][9]. - Non-interest income totaled $92.6 million, a decrease of $6.8 million from $99.4 million in Q1 2024, primarily due to credit valuation adjustments [8]. - Net income for the three months ended September 30, 2025, was $226,917 thousand, an increase from $177,766 thousand in the previous quarter [33]. - Earnings per common share (diluted) rose to $1.30, compared to $1.01 in the prior quarter, reflecting a significant increase of 28.7% [33]. - Adjusted net income for Q1 2025 was $229,486,000, up from $181,251,000 in Q4 2024, representing a 26.6% increase [44]. Loan and Deposit Growth - Period end loans and leases balance reached $53.1 billion, an increase of $0.6 billion, or 1.0% from the prior quarter, while deposits increased by $0.8 billion, or 1.3%, to $65.6 billion [5][13]. - Total loans and leases increased to $53,056,223 thousand, compared to $52,505,168 thousand in the previous quarter, marking a growth of 1.04% [35]. - Total deposits increased to $64,966,959 thousand in Q1 2025, compared to $60,565,366 thousand in Q1 2024, showing a growth of 7.9% [38]. - Total deposits rose by 3.3% to $27.8 billion, compared to $26.9 billion in Q1 2024 [23]. - Core deposits amounted to $58,052,837,000 in Q1 2025, up from $56,518,126,000 in Q4 2024, representing a growth of 2.7% [47]. Credit Quality and Loss Provisions - The provision for credit losses was $77.5 million, contributing to a $23.8 million increase in the allowance for credit losses on loans and leases from the prior quarter [9]. - Total non-performing loans and leases increased to $564.4 million, representing 1.06% of total loans and leases, compared to 0.88% at December 31, 2024 [17]. - Provision for credit losses increased to $77,500,000 in Q1 2025, up from $45,500,000 in Q1 2024, indicating a rise of 70.5% [36]. - Non-performing assets rose to $564,708 thousand, up from $461,751 thousand in the previous quarter, indicating a deterioration in asset quality [33]. Operational Efficiency - The efficiency ratio was 45.79%, compared to 44.80% in the previous quarter, indicating a slight decline in operational efficiency [33]. - Non-interest expense increased by $2.5 million to $122.7 million, driven by higher investments in technology and professional services [23]. - The company is focused on expanding its market presence and enhancing technology investments to improve operational efficiency [24]. - Efficiency ratio improved to 45.79% in Q1 2025 from 44.80% in Q4 2024, indicating better cost management [44]. Asset Growth - Webster's total assets exceed $80 billion, indicating a strong financial position within the commercial banking sector [24]. - Total assets reached $80,279,750 thousand, an increase from $79,025,073 thousand in the previous quarter [35]. - Total interest-earning assets increased to $72,854,574 thousand in Q1 2025, up from $68,740,440 thousand in Q1 2024, reflecting a growth of 3.1% [38]. Interest Income and Margin - Total interest income for Q1 2025 was $973,487,000, an increase of 2.7% from $951,850,000 in Q1 2024 [36]. - Net interest income for Q1 2025 was $612,192 thousand, compared to $567,739 thousand in Q1 2024, representing an increase of 7.8% [38]. - The net interest margin for the quarter was reported at 3.48%, slightly up from 3.44% in the previous quarter [33]. - The average yield on loans and leases decreased to 5.84% in Q1 2025 from 6.24% in Q1 2024 [38].

In its upcoming report, Webster Financial (WBS) is predicted by Wall Street analysts to post quarterly earnings of $1.38 per share, reflecting an increase of 2.2% compared to the same period last year. Revenues are forecasted to be $714.9 million, representing a year-over-year increase of 7.2%.Over the last 30 days, there has been a downward revision of 1% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their in ...

Company Overview - Webster Financial (WBS) shares increased by 11.6% to $46.66 in the last trading session, following a period of 14.2% loss over the past four weeks, indicating a significant recovery in stock performance [1] - The company is expected to report quarterly earnings of $1.38 per share, reflecting a year-over-year increase of 2.2%, with revenues projected at $714.9 million, up 7.2% from the previous year [3] Market Reaction - The stock price surge was influenced by President Donald Trump's announcement on April 9, 2025, regarding a 90-day suspension of reciprocal tariffs for most trading partners, which alleviated concerns about trade wars and improved the economic outlook, positively impacting banking stocks like WBS [2] Earnings Estimates - The consensus EPS estimate for Webster Financial has been revised 1.8% lower in the last 30 days, which typically does not correlate with price appreciation, suggesting caution in the stock's future performance [4] - The company currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [4] Industry Context - Webster Financial operates within the Zacks Banks - Northeast industry, where another competitor, Citizens Financial Services (CZFS), saw a 6.5% increase in its stock price, closing at $57.41, despite a -4.3% return over the past month [4] - Citizens Financial Services has maintained its consensus EPS estimate at $1.49, showing no change compared to the previous year, and also holds a Zacks Rank of 3 (Hold) [5]