Webster Financial (WBS) Reports Q3 Earnings: What Key Metrics Have to Say

Core Insights - Webster Financial (WBS) reported a revenue of $647.62 million for the quarter ended September 2024, reflecting a decrease of 4.4% year-over-year and a surprise of -3.84% compared to the Zacks Consensus Estimate of $673.5 million [1] - Earnings per share (EPS) for the quarter was $1.34, down from $1.55 in the same quarter last year, with an EPS surprise of -0.74% against the consensus estimate of $1.35 [1] Financial Performance Metrics - Net Interest Margin was reported at 3.4%, slightly above the average estimate of 3.3% from six analysts [1] - Efficiency Ratio stood at 45.5%, better than the average estimate of 47.2% from six analysts [1] - Net charge-offs/average loans and leases (annualized) were at 0.3%, matching the average estimate from five analysts [1] - Average balance of Total interest-earning assets was $69.82 billion, slightly below the average estimate of $70.01 billion from five analysts [1] - Total nonperforming loans and leases reached $425.62 million, exceeding the average estimate of $385.76 million from two analysts [1] - Total Non-Interest Income was $57.74 million, significantly lower than the average estimate of $91.04 million from six analysts [1] - Deposit service fees amounted to $38.86 million, below the average estimate of $40.95 million from five analysts [1] - Wealth and investment services generated $8.37 million, compared to the average estimate of $8.74 million from five analysts [1] - Loan and lease related fees were $18.51 million, slightly below the average estimate of $19.21 million from five analysts [1] - Increase in cash surrender value of life insurance policies was $8.02 million, surpassing the average estimate of $6.20 million from four analysts [1] - Non-interest income from Other income was $3.58 million, significantly lower than the average estimate of $15.31 million from four analysts [1] - Tax-equivalent Net Interest Income was reported at $603.54 million, above the average estimate of $594.99 million from four analysts [1] Stock Performance - Shares of Webster Financial have returned +3.9% over the past month, slightly outperforming the Zacks S&P 500 composite's +3.8% change [2] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [2]