Inside a $75 Million Regional Bank Bet With $732 Million in Quarterly Revenue

Core Viewpoint - 140 Summer Partners has established a new position in Webster Financial Corporation, acquiring 1.27 million shares valued at approximately $75.46 million, representing 6.55% of the fund's reportable U.S. equity assets [2][3]. Company Overview - Webster Financial Corporation has a market capitalization of $10.66 billion, with a trailing twelve months (TTM) revenue of $2.81 billion and a net income of $924.75 million [5]. - The company provides a range of services including commercial banking, health savings accounts, and retail banking, generating revenue through net interest income and fee-based services [8][9]. Recent Performance - Webster Financial reported third-quarter earnings of $1.54 per share on revenue of $732.6 million, with a return on tangible common equity near 18% and an efficiency ratio of about 46% [11]. - The bank's loans increased by 2.6% sequentially, deposits rose nearly 3%, and capital ratios remained comfortably above regulatory minimums, while also repurchasing 2.2 million shares [11]. Market Position - As of the latest filing, Webster Financial's shares were priced at $64.15, reflecting a nearly 17% increase over the past year, outperforming the S&P 500, which rose about 15.5% during the same period [4]. - The new holding in Webster Financial ranks as the fifth-largest position within 140 Summer Partners' portfolio, which now includes a total of 21 positions [3][6].