WBS

Webster Financial Q3 2024 – Income Decline and Share Price Surge

Webster Financial Corporation, the holding company for Webster Bank, N.A., reported a net income available to common stockholders of $188.8 million, or $1.10 per diluted share, for the quarter ended September 30, 2024, compared to $222.3 million, or $1.28 per diluted share, for the same period in 2023.

Key Metrics: Revenue for the third quarter of 2024 was $647.6 million. Period-end loans and leases balance was $51.9 billion, up 0.7 percent from the previous quarter. Period-end deposits balance was $64.5 billion, up 3.6 percent from the prior quarter, with core deposit growth of $2.6 billion. Net interest margin was 3.36 percent, up 4 basis points from the prior quarter.

Financial Performance: Net interest income was $589.9 million compared to $587.1 million in the third quarter of 2023. Provision for credit losses was $54.0 million, contributing to an increase in the allowance for credit losses on loans and leases. Total non-interest income was $57.7 million compared to $90.4 million, primarily due to a net loss on the sale of investment securities and a loss on the exit of non-core operations. Total non-interest expense decreased to $349.0 million from $362.6 million in the third quarter of 2023. * Income tax expense was $51.7 million compared to $52.0 million, with an effective tax rate of 21.1 percent.

Balance Sheet: Total investment securities, net were $17.2 billion, compared to $16.4 billion at June 30, 2024. Total loans and leases were $51.9 billion, compared to $51.6 billion at June 30, 2024. * Total nonperforming loans and leases were $425.6 million, or 0.82 percent of total loans and leases.

Segment Performance: Commercial banking reported a decrease in pre-tax, pre-provision net revenue to $270.8 million from $295.1 million in the third quarter of 2023. Healthcare financial services saw an increase in pre-tax net revenue to $66.5 million from $58.6 million in the third quarter of 2023. * Consumer banking reported a decrease in pre-tax, pre-provision net revenue to $114.2 million from $133.1 million in the third quarter of 2023.

Webster Financial Corporation is a leading commercial bank in the northeast, providing financial solutions across commercial banking, consumer banking, and healthcare financial services. The company's core footprint spans the northeastern U.S. from New York to Massachusetts, with certain businesses operating in extended geographies. The market has reacted to these announcements by moving the company's shares 11.5% to a price of $54.21. If you want to know more, read the company's complete 8-K report here.

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