Webster Financial (WBS) - 2025 Q1 - Quarterly Results

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].