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Webster Financial (WBS) - 2024 Q4 - Annual Results
WBSWebster Financial (WBS)2025-01-17 12:33

Financial Performance - Fourth quarter 2024 net income available to common stockholders was 173.6million,or173.6 million, or 1.01 per diluted share, compared to 181.2million,or181.2 million, or 1.05 per diluted share in Q4 2023[2]. - Adjusted earnings per diluted share for Q4 2024 was 1.43,downfrom1.43, down from 1.46 in Q4 2023, excluding securities repositioning losses of 56.9millionandadeferredtaxassetvaluationadjustmentof56.9 million and a deferred tax asset valuation adjustment of 29.4 million[3]. - Net income for Q4 2024 was 177,766,000,adecreaseof10.4177,766,000, a decrease of 10.4% from 192,985,000 in Q3 2024[35]. - Earnings per diluted common share for Q4 2024 was 1.01,downfrom1.01, 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,adecreaseof11.6752,057,000, a decrease of 11.6% from 851,190,000 in 2023[38]. - Adjusted net income for the quarter was 181,251thousand,downfrom181,251 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,withanannualizedbasisof252,364,000, 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 661.0million,withnetinterestincomeof661.0 million, with net interest income of 608.5 million, an increase from 571.0millioninQ42023[5].−TotalinterestincomeforQ42024was571.0 million in Q4 2023[5]. - Total interest income for Q4 2024 was 995,087,000, an increase of 6.7% from 933,147,000inQ42023[38].−NetinterestincomeafterprovisionforloanandleaselossesforQ42024was933,147,000 in Q4 2023[38]. - Net interest income after provision for loan and lease losses for Q4 2024 was 544,968,000, compared to 535,021,000inQ42023,reflectingagrowthof1.8535,021,000 in Q4 2023, reflecting a growth of 1.8%[38]. - Total non-interest income decreased to 52.5 million from 63.8millioninQ42023,primarilyduetolossesonsalesofinvestmentsecurities[8].−Non−interestincomedecreasedto63.8 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 63,815,000inQ42023,adeclineof17.763,815,000 in Q4 2023, a decline of 17.7%[38]. - Operating revenue declined by 5.1% to 229.1 million from 241.3millionyear−over−year[24].AssetsandLiabilities−TotalassetsasofDecember31,2024,were241.3 million year-over-year[24]. Assets and Liabilities - Total assets as of December 31, 2024, were 79,025,073, a slight decrease from 79,453,900inQ32024[37].−WebsterFinancialCorporationhas79,453,900 in Q3 2024[37]. - Webster Financial Corporation has 79 billion in total assets[25]. - Total deposits rose to 64.82billioninQ42024,withinterestexpensesof64.82 billion in Q4 2024, with interest expenses of 358.90 million, compared to 59.98billionand59.98 billion and 325.79 million in Q4 2023[40]. - Total stockholders' equity increased to 9.19billioninQ42024from9.19 billion in Q4 2024 from 8.31 billion in Q4 2023[40]. - Total loans and leases increased to 52,505,168thousandasofDecember31,2024,upfrom52,505,168 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,slightlyupfrom689,566,000, slightly up from 687,798,000 in Q3 2024[37]. Credit Quality - Provision for credit losses was 63.5million,contributingtoa63.5 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 63,500,000inQ42024from63,500,000 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,anincreaseof8.0461,751,000, an increase of 8.0% from 427,274,000 in Q3 2024[35]. - Nonperforming loans and leases totaled 461,326thousandasofDecember31,2024,anincreasefrom461,326 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 60,871thousand,comparedto60,871 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 340.4million,adecreaseof340.4 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 15.3billion,withdepositsof15.3 billion, with deposits of 10.0 billion and assets under administration of 5.3billion[21].−CommercialBankingsegmenthad5.3 billion[21]. - Commercial Banking segment had 40.6 billion in loans and leases and 16.3billionindepositsasofDecember31,2024[19].−ConsumerBankingsegmenthad16.3 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].