Core Insights - Webster Financial Corporation (WBS) reported a third-quarter 2025 earnings per share (EPS) of $1.54, exceeding the Zacks Consensus Estimate of $1.52 and up from $1.34 a year ago [1][10] - The company's shares have increased by 1.3% since the earnings announcement on October 17 [1] Financial Performance - Total revenues for the quarter rose 13.1% year over year to $732.6 million, surpassing the Zacks Consensus Estimate by 1.2% [3][10] - Net interest income (NII) increased by 7.1% year over year to $631.7 million, with a net interest margin of 3.40%, down one basis point [3] - Non-interest income significantly increased to $100.9 million from $57.7 million in the previous year [4] - Net income applicable to common shareholders was $254.1 million, reflecting a 36% increase from the prior-year quarter [2] Expenses and Efficiency - Non-interest expenses rose 2.2% year over year to $356.7 million, driven by investments in human capital and business development [5] - The efficiency ratio was 45.79%, slightly up from 45.49% in the prior-year quarter, indicating a decline in profitability [6] Loans and Deposits - Total loans and leases increased by 2.6% sequentially to $55.1 billion, while total deposits rose by 2.8% to $68.2 billion as of September 30, 2025 [7] Credit Quality - Total non-performing assets increased by 27.6% year over year to $545.3 million, with the allowance for loan losses stable at 1.32% of total loans [8] - The provision for credit losses was $44 million, down 18.5% year over year [8] Capital Ratios - The Tier 1 risk-based capital ratio improved to 11.90% from 11.77% a year ago, while the total risk-based capital ratio increased to 14.69% from 14.06% [9] Profitability Ratios - Return on average assets rose to 1.27% from 1.01% in the prior-year quarter, and return on average common stockholders' equity increased to 11.23% from 8.67% [11] Strategic Outlook - Rising NII and non-interest income are expected to enhance Webster Financial's top line, supported by strategic buyouts and growth in deposits and loans [12]