Here's What Key Metrics Tell Us About Webster Financial (WBS) Q1 Earnings

Core Insights - Webster Financial (WBS) reported revenue of $704.8 million for the quarter ended March 2025, reflecting a year-over-year increase of 5.7% but falling short of the Zacks Consensus Estimate of $714.9 million by -1.41% [1] - The earnings per share (EPS) for the quarter was $1.30, a decrease from $1.35 in the same quarter last year, and below the consensus estimate of $1.38, resulting in an EPS surprise of -5.80% [1] Financial Performance Metrics - Net Interest Margin was reported at 3.5%, exceeding the five-analyst average estimate of 3.4% [4] - The Efficiency Ratio stood at 45.8%, better than the average estimate of 48.3% from five analysts [4] - Net charge-offs as a percentage of average loans and leases (annualized) were 0.4%, slightly above the average estimate of 0.3% [4] - Average balance of Total interest-earning assets was $72.85 billion, surpassing the estimate of $71.90 billion [4] - Total nonperforming loans and leases amounted to $564.40 million, higher than the average estimate of $481.93 million [4] - Total Non-Interest Income was $92.61 million, slightly below the average estimate of $93.68 million [4] - Net Interest Income reported was $612.19 million, compared to the estimate of $616.12 million [4] - Wealth and investment services income was $7.79 million, below the average estimate of $8.53 million [4] - Loan and lease related fees totaled $17.62 million, lower than the average estimate of $19.09 million [4] - Deposit service fees were $38.90 million, compared to the average estimate of $40.48 million [4] - Increase in cash surrender value of life insurance policies was $7.99 million, exceeding the estimate of $7.28 million [4] - Non-interest income from Other income was $20.09 million, above the average estimate of $19.17 million [4] Stock Performance - Webster Financial's shares have returned -9.8% over the past month, compared to a -5.1% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]