Webster Financial (WBS) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates

Core Insights - Webster Financial (WBS) reported a revenue of $715.84 million for the quarter ended June 2025, reflecting a year-over-year increase of 16.5% and a surprise of +0.58% over the Zacks Consensus Estimate of $711.74 million [1] - The earnings per share (EPS) for the quarter was $1.52, up from $1.26 in the same quarter last year, resulting in an EPS surprise of +7.8% compared to the consensus estimate of $1.41 [1] Financial Performance Metrics - Net Interest Margin stood at 3.4%, matching the average estimate from six analysts [4] - The Efficiency Ratio was reported at 45.4%, better than the average estimate of 47.6% from six analysts [4] - Net charge-offs as a percentage of average loans and leases (annualized) were 0.3%, lower than the average estimate of 0.4% from five analysts [4] - Average balance of Total interest-earning assets was $74 billion, exceeding the average estimate of $72.96 billion from five analysts [4] - Total nonperforming loans and leases amounted to $534.52 million, significantly lower than the estimated $587.42 million from two analysts [4] - Total Non-Interest Income reached $94.66 million, slightly above the average estimate of $93.59 million from six analysts [4] - Net Interest Income was reported at $621.18 million, surpassing the average estimate of $616.23 million from five analysts [4] - Wealth and investment services income was $7.78 million, slightly below the average estimate of $7.86 million from five analysts [4] - Loan and lease related fees totaled $17.66 million, below the average estimate of $17.97 million from five analysts [4] - Deposit service fees were reported at $40.93 million, exceeding the average estimate of $39.51 million from five analysts [4] - Increase in cash surrender value of life insurance policies was $9.17 million, above the average estimate of $8.02 million from four analysts [4] - Non-interest income from other sources was $19.12 million, below the average estimate of $20.35 million from four analysts [4] Stock Performance - Webster Financial's shares have returned +13.3% over the past month, outperforming the Zacks S&P 500 composite's +4.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]