Webster Financial Corp (WBS) Reports Q3 2023 Earnings, EPS of $1.28
Webster Financial Corp (NYSE:WBS) reported Q3 2023 earnings per share (EPS) of $1.28, adjusted EPS of $1.55.
The company's net income available to common stockholders was $222.3 million.
Revenue for the quarter stood at $677.5 million.
Webster Financial Corp (NYSE:WBS) reported a return on average assets of 1.23 percent and a net interest margin of 3.49 percent.
Webster Financial Corp (NYSE:WBS) released its earnings report for the third quarter of 2023 on October 19, 2023. The company reported net income available to common stockholders of $222.3 million, or $1.28 per diluted share, compared to $229.8 million, or $1.31 per diluted share, for the same quarter in 2022. The results include $61.6 million pre-tax ($45.1 million after tax), or $0.271 per diluted share, of charges related to the merger with Sterling Bancorp on January 31, 2022. Excluding these charges, adjusted earnings per diluted share would have been $1.551.
Financial Highlights
Webster Financial Corp (NYSE:WBS) reported revenue of $677.5 million for the third quarter of 2023. The period end loans and leases balance stood at $50.1 billion, down $1.5 billion or 3.0 percent from the prior quarter. The period end deposits balance was $60.3 billion, up $1.6 billion or 2.7 percent from the prior quarter. The company's provision for credit losses totaled $36.5 million.
The company's return on average assets was 1.23 percent, with an adjusted figure of 1.48 percent. The return on average tangible common equity was 17.51 percent, with an adjusted figure of 20.96 percent. The net interest margin was 3.49 percent, up 14 basis points from the prior quarter. The common equity tier 1 ratio stood at 11.15 percent.
Commentary
"Our results this quarter illustrate the strength of Webster, both in terms of our earnings power and sound risk and operating profile," said John R. Ciulla, president and chief executive officer. "During the quarter we completed our core systems conversion which marks a significant milestone in the completion of our integration. We continue to be well positioned for the current operating environment."
Business Performance
Webster Financial Corp (NYSE:WBS) reported that its Commercial Banking segment had $40.3 billion in loans and leases and $19.4 billion in deposits. The HSA Bank division had $12.3 billion in total footings comprising $8.2 billion in deposits and $4.1 billion in assets under administration through linked investment accounts. The Consumer Banking segment had $9.8 billion in loans and $23.6 billion in deposits.
The company's net interest income was $587.1 million compared to $551.0 million in the third quarter of 2022. The provision for credit losses was $36.5 million in the quarter, reflecting a $6.5 million increase in the allowance for credit losses on loans and leases from the prior quarter. Total non-interest income was $90.4 million compared to $113.6 million, a decrease of $23.2 million.
Webster Financial Corp (NYSE:WBS) is a leading commercial bank in the Northeast that provides a wide range of digital and traditional financial solutions across three differentiated lines of business: Commercial Banking, Consumer Banking and its HSA Bank division.
This article first appeared on GuruFocus.
