Webster Financial (WBS)

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Webster Financial (WBS) Q4 Earnings Top Estimates
ZACKS· 2025-01-17 14:40
Core Viewpoint - Webster Financial (WBS) reported quarterly earnings of $1.43 per share, exceeding the Zacks Consensus Estimate of $1.36 per share, but down from $1.46 per share a year ago, indicating a 5.15% earnings surprise [1] Financial Performance - The company posted revenues of $660.98 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 3.64%, compared to $634.84 million in the same quarter last year [2] - Over the last four quarters, Webster Financial has surpassed consensus EPS estimates only once and has not beaten consensus revenue estimates during this period [2] Stock Performance - Webster Financial shares have increased approximately 4.9% since the beginning of the year, outperforming the S&P 500's gain of 1% [3] Future Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $1.32 for the coming quarter and $5.71 for the current fiscal year, with revenues expected to be $687.16 million and $2.83 billion respectively [7] - The estimate revisions trend for Webster Financial is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Banks - Northeast industry, to which Webster Financial belongs, is currently in the top 20% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]
Webster Financial (WBS) - 2024 Q4 - Annual Results
2025-01-17 12:33
Financial Performance - Fourth quarter 2024 net income available to common stockholders was $173.6 million, or $1.01 per diluted share, compared to $181.2 million, or $1.05 per diluted share in Q4 2023[2]. - Adjusted earnings per diluted share for Q4 2024 was $1.43, down from $1.46 in Q4 2023, excluding securities repositioning losses of $56.9 million and a deferred tax asset valuation adjustment of $29.4 million[3]. - Net income for Q4 2024 was $177,766,000, a decrease of 10.4% from $192,985,000 in Q3 2024[35]. - Earnings per diluted common share for Q4 2024 was $1.01, down from $1.10 in Q3 2024, representing a decline of 8.2%[35]. - Net income available to common stockholders for the full year 2024 was $752,057,000, a decrease of 11.6% from $851,190,000 in 2023[38]. - Adjusted net income for the quarter was $181,251 thousand, down from $195,531 thousand in the prior quarter, reflecting a decrease of 7.3%[47]. - Adjusted net income for the three months ended December 31, 2024, was $252,364,000, with an annualized basis of $1,009,456,000[50]. - Adjusted return on average tangible common stockholders' equity was reported at 17.73% for the quarter[50]. Revenue and Income - Total revenue for Q4 2024 was $661.0 million, with net interest income of $608.5 million, an increase from $571.0 million in Q4 2023[5]. - Total interest income for Q4 2024 was $995,087,000, an increase of 6.7% from $933,147,000 in Q4 2023[38]. - Net interest income after provision for loan and lease losses for Q4 2024 was $544,968,000, compared to $535,021,000 in Q4 2023, reflecting a growth of 1.8%[38]. - Total non-interest income decreased to $52.5 million from $63.8 million in Q4 2023, primarily due to losses on sales of investment securities[8]. - Non-interest income decreased to $52,507,000 in Q4 2024 from $63,815,000 in Q4 2023, a decline of 17.7%[38]. - Operating revenue declined by 5.1% to $229.1 million from $241.3 million year-over-year[24]. Assets and Liabilities - Total assets as of December 31, 2024, were $79,025,073, a slight decrease from $79,453,900 in Q3 2024[37]. - Webster Financial Corporation has $79 billion in total assets[25]. - Total deposits rose to $64.82 billion in Q4 2024, with interest expenses of $358.90 million, compared to $59.98 billion and $325.79 million in Q4 2023[40]. - Total stockholders' equity increased to $9.19 billion in Q4 2024 from $8.31 billion in Q4 2023[40]. - Total loans and leases increased to $52,505,168 thousand as of December 31, 2024, up from $51,947,015 thousand in the previous quarter, representing a growth of 1.07%[44]. - The allowance for credit losses on loans and leases was $689,566,000, slightly up from $687,798,000 in Q3 2024[37]. Credit Quality - Provision for credit losses was $63.5 million, contributing to a $1.8 million increase in the allowance for credit losses on loans and leases from the prior quarter[9]. - Provision for credit losses increased to $63,500,000 in Q4 2024 from $36,000,000 in Q4 2023, representing a significant rise of 76.4%[38]. - Nonperforming assets rose to $461,751,000, an increase of 8.0% from $427,274,000 in Q3 2024[35]. - Nonperforming loans and leases totaled $461,326 thousand as of December 31, 2024, an increase from $425,617 thousand in the previous quarter, indicating a rise of 8.3%[46]. - The total net charge-offs for the quarter were $60,871 thousand, compared to $35,426 thousand in the previous quarter, indicating an increase of 71.5%[46]. Efficiency and Ratios - Total non-interest expense was $340.4 million, a decrease of $36.8 million from Q4 2023, excluding prior year special assessments and merger-related expenses[10]. - The efficiency ratio improved to 44.80% in Q4 2024, compared to 45.49% in Q3 2024[35]. - The common equity tier 1 ratio was 11.50%, compared to 11.25% at September 30, 2024, and 11.11% at December 31, 2023[18]. - The return on average tangible common stockholders' equity was 12.73% for the quarter, compared to 14.29% in the previous quarter, indicating a decline in profitability[47]. Segment Performance - Healthcare Financial Services segment reported total footings of $15.3 billion, with deposits of $10.0 billion and assets under administration of $5.3 billion[21]. - Commercial Banking segment had $40.6 billion in loans and leases and $16.3 billion in deposits as of December 31, 2024[19]. - Consumer Banking segment had $11.9 billion in loans and $27.3 billion in deposits as of December 31, 2024[23]. Future Outlook - The company plans to continue investing in technology and expanding its market presence[28].
Curious about Webster Financial (WBS) Q4 Performance? Explore Wall Street Estimates for Key Metrics
ZACKS· 2025-01-14 15:16
Core Insights - Analysts project Webster Financial (WBS) will report quarterly earnings of $1.36 per share, a decline of 6.9% year over year, with revenues expected to reach $685.95 million, an increase of 8.1% from the same quarter last year [1] Earnings Projections - The consensus EPS estimate for the quarter has remained unchanged over the past 30 days, indicating a reassessment of initial projections by covering analysts [1][2] - Revisions to earnings projections are critical for predicting investor behavior regarding the stock [2] Key Financial Metrics - Analysts estimate 'Net Interest Margin' will be 3.3%, down from 3.4% in the same quarter last year [4] - The 'Efficiency Ratio' is projected to be 48.1%, compared to 43% a year ago [4] - 'Average balance - Total interest-earning assets' is expected to reach $71.52 billion, up from $66.57 billion year over year [4] Nonperforming Loans and Non-Interest Income - 'Total nonperforming loans and leases' are projected at $443.36 million, significantly higher than $209.54 million from the previous year [5] - 'Total Non-Interest Income' is expected to be $88.53 million, compared to $63.82 million in the same quarter last year [5] Net Interest Income and Related Fees - 'Net Interest Income' is estimated at $598.29 million, up from $571.02 million year over year [6] - 'Loan and lease related fees' are expected to be $18.69 million, down from $21.36 million in the same quarter last year [7] - 'Deposit service fees' are projected at $39.64 million, compared to $37.46 million a year ago [7] Additional Income Metrics - 'Increase in cash surrender value of life insurance policies' is estimated at $7.78 million, up from $6.59 million year over year [8] - 'Non-interest income - Other income' is expected to be $14.32 million, compared to $6.46 million last year [8] - 'Tax-equivalent Net Interest Income' is projected at $610.95 million, compared to $588.85 million from the previous year [8] Stock Performance - Shares of Webster Financial have decreased by 7.1% over the past month, while the Zacks S&P 500 composite has moved down by 3.5% [9] - With a Zacks Rank 3 (Hold), WBS is expected to reflect the overall market performance in the near future [9]
Earnings Preview: Webster Financial (WBS) Q4 Earnings Expected to Decline
ZACKS· 2025-01-10 16:01
Core Viewpoint - Webster Financial (WBS) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ended December 2024 [1][3] Earnings Expectations - The consensus estimate for Webster Financial's quarterly earnings is $1.36 per share, reflecting a year-over-year decrease of 6.9% [3] - Expected revenues are projected to be $685.95 million, which is an increase of 8.1% compared to the same quarter last year [3] Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 0.04%, indicating a slight bearish sentiment among analysts [4] - The Most Accurate Estimate for Webster Financial is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -2.38% [10][11] Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a negative Earnings ESP reading indicates a lower likelihood of an earnings beat, particularly when combined with a Zacks Rank of 3 (Hold) [8][11] - Webster Financial has not been able to exceed consensus EPS estimates in any of the last four quarters, with the last reported quarter showing a surprise of -0.74% [12][13] Industry Comparison - In the Zacks Banks - Northeast industry, Bank OZK (OZK) is expected to report earnings of $1.45 per share, indicating a year-over-year decline of 3.3% [17] - Bank OZK's expected revenue for the quarter is $408.04 million, which is a slight increase of 0.1% from the previous year [17]
Webster Financial: Risks Are Exaggerated
Seeking Alpha· 2025-01-07 05:43
Company Overview - Webster Financial Corporation (NYSE: WBS) is a bank holding company founded in 1935 and headquartered in Stamford, CT [1] - The company offers a range of banking and financial solutions through its bank subsidiary, Webster Bank [1] - Webster Bank primarily operates in Connecticut, Massachusetts, Rhode Island, and New York [1] Business Operations - Webster Financial Corporation provides various banking and financial services through its subsidiary, Webster Bank [1] - The company's operations are concentrated in the Northeastern United States, specifically in Connecticut, Massachusetts, Rhode Island, and New York [1]
Webster Financial Rides on Top-Line Growth Amid Higher Expenses
ZACKS· 2025-01-03 16:35
Core Viewpoint - Webster Financial Corporation (WBS) demonstrates strong revenue growth supported by increasing net interest income (NII) and diversified fee income sources, although elevated expenses and high debt levels present concerns [1]. Growth Catalysts for Webster Financial - The company maintains a solid balance sheet, with deposits and loans experiencing a compound annual growth rate (CAGR) of 27.1% and 26.1% respectively from 2019 to 2023, continuing this trend in the first nine months of 2024 [2]. - In January 2024, WBS acquired Ametros to enhance its low-cost and long-duration deposits, with management projecting a 25% CAGR in deposits over the next five years [2]. - Strategic acquisitions, including interLINK in 2023 and Bend Financial and Sterling Bancorp in 2022, have strengthened HSA deposits and overall deposit growth, bolstering the company's balance sheet [3]. - Revenue growth is notable, with NII and non-interest income achieving a CAGR of 25.1% and 2.5% respectively from 2019 to 2023, despite a decline in the first nine months of 2024; NII is expected to improve as interest rates decrease [4]. - A joint venture with Marathon Asset is anticipated to provide a new source of fee income, supporting non-interest income growth [5]. - The company's trailing 12-month return on equity (ROE) stands at 11.03%, outperforming the industry average of 8.2% [5]. Headwinds for Webster Financial - Elevated non-interest expenses, driven by costs from acquired businesses and increased employee compensation, have seen a CAGR of 18.6% from 2019 to 2023, continuing to rise in the first nine months of 2024 [6]. - Ongoing investments in talent, operational support, and technology are expected to keep expenses high in the short term [7]. - As of September 30, 2024, total debt was $4.02 billion, while cash and interest-bearing deposits totaled $3.19 billion, raising concerns about the company's ability to meet debt obligations if economic conditions worsen [7][8]. Price Performance - Over the past six months, WBS shares have increased by 26.2%, outperforming the industry's growth of 20% [9].
Webster Financial (WBS) - 2024 Q3 - Quarterly Report
2024-11-08 21:33
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 peri ...
Webster Financial Q3 Earnings Miss Estimates, Revenues Decline Y/Y
ZACKS· 2024-10-18 14:26
Webster Financial (WBS) reported adjusted third-quarter 2024 earnings per share (EPS) of $1.34, which missed Zacks Consensus Estimate of $1.35. This compares unfavorably with earnings of $1.55 reported a year ago. Find the latest earnings estimates and surprises on the Zacks Earnings Calendar. Results were affected by a fall in non-interest income and higher provisions. However, lower expenses and increased net interest income (NII) offered some support. Net income applicable to common shareholders (GAAP ba ...
Webster Financial: Shares Roar Higher On Solid Outlook, Yet I Retain 'Hold'
Seeking Alpha· 2024-10-18 12:00
October 17th ended up being a really solid day for shareholders of Webster Financial (NYSE: WBS ). The stock skyrocketed, closing up 11.6%, after management announced financial results covering the third quarter of the Crude Value Insights offers you an investing service and community focused on oil and natural gas. We focus on cash flow and the companies that generate it, leading to value and growth prospects with real potential. Subscribers get to use a 50+ stock model account, in-depth cash flow analyses ...
Webster Financial (WBS) Reports Q3 Earnings: What Key Metrics Have to Say
ZACKS· 2024-10-17 14:36
For the quarter ended September 2024, Webster Financial (WBS) reported revenue of $647.62 million, down 4.4% over the same period last year. EPS came in at $1.34, compared to $1.55 in the year-ago quarter. The reported revenue represents a surprise of -3.84% over the Zacks Consensus Estimate of $673.5 million. With the consensus EPS estimate being $1.35, the EPS surprise was -0.74%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to d ...