Webster Financial (WBS) - 2024 Q4 - Annual Results

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].