Webster Financial Corporation has reported its fourth-quarter 2024 earnings, with a net income available to common stockholders of $173.6 million, or $1.01 per diluted share, compared to $181.2 million, or $1.05 per diluted share, for the same period in 2023.
The highlights for the fourth quarter of 2024 include revenue of $661.0 million, period-end loans and leases balance of $52.5 billion, up $0.6 billion or 1.1 percent from the prior quarter, and period-end deposits balance of $64.8 billion, up $0.2 billion or 0.4 percent from the prior quarter.
Webster's consolidated financial performance shows that quarterly net interest income was $608.5 million compared to $571.0 million in the fourth quarter of 2023, with a net interest margin of 3.39 percent, up 3 basis points from the prior quarter.
The provision for credit losses was $63.5 million in the fourth quarter, contributing to a $1.8 million increase in the allowance for credit losses on loans and leases from the prior quarter.
Total non-interest income was $52.5 million compared to $63.8 million, a decrease of $11.3 million compared to the fourth quarter of 2023. Excluding losses on sales of investment securities, total non-interest income increased $28.8 million, primarily due to direct investment gains, a credit valuation adjustment, and the addition of Ametros.
The total non-interest expense was $340.4 million compared to $377.2 million, a decrease of $36.8 million. Excluding certain charges from the prior year, total non-interest expense increased $41.0 million, primarily due to the addition of Ametros and related intangible amortization, higher performance-based incentives, investments in human capital and technology, and a contribution to the Webster Charitable Foundation.
Income tax expense was $79.3 million compared to $36.2 million, and the effective tax rate was 30.9 percent compared to 16.3 percent. The higher tax expense and tax rate in the current period reflect a $29.4 million deferred tax asset valuation adjustment.
Total loans and leases were $52.5 billion, compared to $51.9 billion at September 30, 2024, and $50.7 billion at December 31, 2023. Total nonperforming loans and leases were $461.3 million, or 0.88 percent of total loans and leases, compared to $425.6 million, or 0.82 percent of total loans and leases, at September 30, 2024, and $209.5 million, or 0.41 percent of total loans and leases, at December 31, 2023.
The return on average common stockholders’ equity and the return on average tangible common stockholders’ equity were 7.80 percent and 12.73 percent, respectively, compared to 8.67 percent and 14.29 percent, respectively, in the third quarter of 2024, and 9.03 percent and 14.49 percent, respectively, in the fourth quarter of 2023.
In its reportable segments, commercial banking's net interest income decreased by 6.1%, while non-interest income increased by 25.4%. Healthcare financial services' net interest income increased by 22.0%, and non-interest income increased by 24.3%. Consumer banking's net interest income decreased by 5.5%, and non-interest income decreased by 1.7%.
Webster Financial Corporation is the holding company for Webster Bank, N.A., which provides a wide range of digital and traditional financial solutions across three differentiated lines of business: commercial banking, consumer banking, and healthcare financial services. It is headquartered in Stamford, CT, and has $79 billion in assets. Today the company's shares have moved 3.0% to a price of $59.67. For the full picture, make sure to review Webster Financial's 8-K report.
