WBS Webster Financial Corporation

Webster Financial Corporation (“Webster”) (NYSE: WBS), the holding company for Webster Bank, N.A., today announced net income available to common stockholders of $173.6 million, or $1.01 per diluted share, for the quarter ended December 31, 2024, compared to $181.2 million, or $1.05 per diluted share, for the quarter ended December 31, 2023.

Fourth quarter 2024 results include securities repositioning losses of $56.9 million, pre-tax, and a deferred tax asset valuation adjustment of $29.4 million. Excluding these items, adjusted earnings per diluted share would have been $1.431 for the quarter ended December 31, 2024, compared to $1.46 for the quarter ended December 31, 2023.

“Our financial performance for the quarter and full year 2024 illustrate the power and resiliency of Webster’s business model” said John R. Ciulla, chairman and chief executive officer. “At the same time, we are thoughtfully investing to facilitate future growth.”

Highlights for the fourth quarter of 2024:

• Revenue of $661.0 million.
• Period end loans and leases balance of $52.5 billion, up $0.6 billion or 1.1 percent from prior quarter.
• Period end deposits balance of $64.8 billion, up $0.2 billion or 0.4 percent from prior quarter.
• Provision for credit losses of $63.5 million.
• Return on average assets of 0.91 percent; adjusted 1.27 percent1.
• Return on average tangible common equity of 12.73 percent1; adjusted 17.73 percent1.
• Net interest margin of 3.39 percent, up 3 basis points from prior quarter.
• Common equity tier 1 ratio of 11.50%2.
• Efficiency ratio of 44.80 percent1.
• Tangible common equity ratio of 7.45 percent1.

“The actions we took in 2024 to enhance Webster’s capital and liquidity, unique funding attributes and investments in people and technology fortify the base for our company’s growth” said Neal Holland, executive vice president and chief financial officer.

1 See “Non-GAAP to GAAP Reconciliations” section beginning on page 19.

2 Presented as preliminary for December 31, 2024.

Consolidated financial performance:

Quarterly net interest income compared to the fourth quarter of 2023:

• Net interest income was $608.5 million compared to $571.0 million.
• Net interest margin was 3.39 percent compared to 3.42 percent. The yield on interest-earning assets decreased by 1 basis point, and the cost of interest-bearing liabilities remained flat.
• Average interest-earning assets totaled $71.9 billion and increased by $4.4 billion, or 6.4 percent.
• Average loans and leases totaled $52.3 billion and increased by $1.9 billion, or 3.8 percent.
• Average deposits totaled $64.8 billion and increased by $4.8 billion, or 8.1 percent.

Quarterly provision for credit losses:

• The provision for credit losses was $63.5 million in the quarter, contributing to a $1.8 million increase in the allowance for credit losses on loans and leases from the prior quarter. The provision for credit losses was $54.0 million in the prior quarter, and $36.0 million a year ago.
• Net charge-offs were $60.9 million, compared to $35.4 million in the prior quarter, and $34.0 million a year ago. The ratio of net charge-offs to average loans and leases was 0.47 percent, compared to 0.27 percent in both the prior quarter and a year ago.
• The allowance for credit losses on loans and leases represented 1.31 percent of total loans and leases, compared to 1.32 percent at September 30, 2024, and 1.25 percent at December 31, 2023. The allowance represented 149 percent of nonperforming loans and leases, compared to 162 percent at September 30, 2024, and 303 percent at December 31, 2023.

Quarterly non-interest income compared to the fourth quarter of 2023:

• Total non-interest income was $52.5 million compared to $63.8 million, a decrease of $11.3 million. Total non-interest income includes $56.9 million and $16.8 million of losses on sales of investment securities for the fourth quarter of 2024 and 2023, respectively. Excluding these items, total non-interest income increased $28.8 million. The increase is primarily attributable to direct investment gains, a credit valuation adjustment, and the addition of Ametros.

Quarterly non-interest expense compared to the fourth quarter of 2023:

• Total non-interest expense was $340.4 million compared to $377.2 million, a decrease of $36.8 million. In the fourth quarter of 2023, total non-interest expense included $47.2 million related to the FDIC special assessment and a net $30.7 million of merger related expenses. Excluding those charges, total non-interest expense increased $41.0 million. The increase is primarily attributable to the addition of Ametros and the related intangible amortization, higher performance-based incentives, investments in human capital and technology, and a contribution to the Webster Charitable Foundation.

Quarterly income taxes compared to the fourth quarter of 2023:

• 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 reflects a $29.4 million deferred tax asset valuation adjustment related to state and local net operating loss carryforwards, which impacted the rate by 11.4 percentage points. The lower effective tax rate in the period a year ago reflected the recognition of a discrete tax benefit attributable to tax return true-up adjustments, along with a lower level of pre-tax income in that period.

Investment securities:

• Total investment securities, net were $17.5 billion, compared to $17.2 billion at September 30, 2024, and $16.0 billion at December 31, 2023. The carrying value of the available-for-sale portfolio included $712.9 million of net unrealized losses, compared to $486.1 million at September 30, 2024, and $708.7 million at December 31, 2023. The carrying value of the held-to-maturity portfolio does not reflect $991.2 million of net unrealized losses, compared to $677.0 million at September 30, 2024, and $810.2 million at December 31, 2023.

Loans and leases:

• 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. Compared to September 30, 2024, commercial loans and leases increased by $556.0 million, commercial real estate loans decreased by $300.3 million, residential mortgages increased by $277.1 million, and consumer loans increased by $25.5 million. Compared to a year ago, commercial loans and leases increased by $904.9 million, commercial real estate loans increased by $233.3 million, residential mortgages increased by $625.7 million, and consumer loans increased by $15.2 million.
• Loan originations for the portfolio were $3.4 billion, compared to $2.8 billion in the prior quarter, and $3.2 billion a year ago.

Asset quality:

• 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.
• Past due loans and leases were $88.6 million, compared to $108.9 million at September 30, 2024, and $46.6 million at December 31, 2023. The decrease from prior quarter is driven primarily by commercial non-mortgage and residential mortgages, partially offset by commercial real estate.

Deposits and borrowings:

• Total deposits were $64.8 billion, compared to $64.5 billion at September 30, 2024, and $60.8 billion at December 31, 2023. During the quarter, seasonal declines in municipal deposits of $1.1 million were offset by short-duration time deposits. Core deposits to total deposits1 were 87.3 percent, compared to 88.5 percent at September 30, 2024, and 86.1 percent at December 31, 2023. The loan to deposit ratio was 81.1 percent, compared to 80.5 percent at September 30, 2024, and 83.5 percent at December 31, 2023.
• Total borrowings were $3.4 billion, compared to $4.1 billion at September 30, 2024, and $3.9 billion at December 31, 2023.

Capital:

• The return on average common stockholders’ equity and the return on average tangible common stockholders’ equity1 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.
• The adjusted return on average tangible common stockholders’ equity1 was 17.73 percent, compared to 17.28 percent in the third quarter of 2024, and 19.83 percent in the fourth quarter of 2023.
• The tangible equity1 and tangible common equity1 ratios were 7.82 percent and 7.45 percent, respectively, compared to 7.85 percent and 7.48 percent, respectively, at September 30, 2024, and 8.12 percent and 7.73 percent, respectively, at December 31, 2023. The common equity tier 12 ratio was 11.50 percent, compared to 11.25 percent at September 30, 2024, and 11.11 percent at December 31, 2023.
• Book value and tangible book value per common share1 were $51.63 and $32.95, respectively, compared to $52.00 and $33.26, respectively, at September 30, 2024, and $48.87 and $32.39, respectively, at December 31, 2023.

1 See “Non-GAAP to GAAP Reconciliations” section beginning on page 19.

2 Presented as preliminary for December 31, 2024, and actual for the remaining periods.

Reportable segments:

Commercial Banking

Webster’s Commercial Banking segment serves businesses that have more than $10 million of revenue through its asset based lending, commercial services, commercial real estate, middle market, private banking, sponsor and specialty, verticals, regional banking, and treasury management business units. At December 31, 2024, Commercial Banking had $40.6 billion in loans and leases and $16.3 billion in deposits, as well as a combined $3.0 billion in assets under administration and management.

Commercial Banking Operating Results:

 

 

 

 

 

Percent

 

Three months ended December 31,

 

Favorable/

(In thousands)

 

2024

2023

 

(Unfavorable)

Net interest income

 

$330,392

$351,942

 

 

(6.1) %

 

Non-interest income

 

41,026

32,711

 

 

25.4

 

Operating revenue

 

371,418

384,653

 

 

(3.4)

 

Non-interest expense

 

106,762

97,299

 

 

(9.7)

 

Pre-tax, pre-provision net revenue

 

$264,656

$287,354

 

 

(7.9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At December 31,

 

Percent

(In millions)

 

2024

2023

 

Increase

Loans and leases

 

$40,616

$39,481

 

 

2.9 %

 

Deposits

 

16,252

16,054

 

 

1.2

 

AUA / AUM (off balance sheet)

 

2,966

2,911

 

 

1.9

 

Pre-tax, pre-provision net revenue decreased $22.7 million, to $264.7 million, in the quarter as compared to prior year. Net interest income decreased $21.5 million, to $330.4 million, primarily driven by lower loan yields coupled with lower deposit interest spread. Non-interest income increased $8.3 million, to $41.0 million, primarily driven by direct investment gains, higher deposit and cash management fees, and increased fees from trust and investment services, partially offset by lower fees from client hedging activities and lower loan servicing fees. Non-interest expense increased $9.5 million, to $106.8 million, primarily driven by continued investments in technology and increased compensation-related expenses.

Healthcare Financial Services

Webster’s Healthcare Financial Services segment is comprised of HSA Bank and Ametros, which was acquired in the first quarter of 2024. This segment offers consumer-directed healthcare solutions that include health savings accounts, health reimbursement arrangements, administration of medical insurance claim settlements, flexible spending accounts, and commuter benefits. Accounts are distributed nationwide directly to employers and individual consumers, as well as through national and regional insurance carriers, benefit consultants, and financial advisors. At December 31, 2024, Healthcare Financial Services had $15.3 billion in total footings comprising $10.0 billion in deposits and $5.3 billion in assets under administration through linked investment accounts.

Healthcare Financial Services Operating Results:

 

 

 

 

 

Percent

 

Three months ended December 31,

 

Favorable/

(In thousands)

 

2024

2023

 

(Unfavorable)

Net interest income

 

$95,185

$78,036

 

 

22.0 %

 

Non-interest income

 

25,140

20,224

 

 

24.3

 

Operating revenue

 

120,325

98,260

 

 

22.5

 

Non-interest expense

 

56,672

41,947

 

 

(35.1)

 

Pre-tax, net revenue

 

$63,653

$56,313

 

 

13.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At December 31,

 

Percent

(Dollars in millions)

 

2024

2023

 

Increase

Number of accounts (thousands)

 

3,326

3,184

 

 

4.5 %

 

 

 

 

 

 

 

 

 

Deposits

 

$9,967

$8,288

 

 

20.3

 

Linked investment accounts (off balance sheet)

 

5,322

4,642

 

 

14.6

 

Total footings

 

$15,289

$12,930

 

 

18.2

 

Pre-tax net revenue increased $7.3 million, to $63.7 million, in the quarter as compared to prior year. Net interest income increased $17.1 million, to $95.2 million, primarily due to $12.0 million from Ametros coupled with deposit growth at HSA Bank. Non-interest income increased $4.9 million, to $25.1 million, primarily due to $6.1 million from Ametros, offset by a decrease of $1.2 million from HSA Bank. The decrease in HSA Bank was the net result of lower customer account fees partially offset by higher interchange revenue. Non-interest expense increased $14.7 million, to $56.7 million, primarily due to $11.4 million from Ametros. HSA Bank expenses were $3.3 million higher due to higher service contract expense related to account growth and support costs.

Consumer Banking

Webster’s Consumer Banking segment serves consumer and business banking customers primarily throughout southern New England and the New York metro and suburban markets. Consumer Banking is comprised of the residential and consumer lending, private client, and business banking business units, as well as a distribution network consisting of 196 banking centers and 347 ATMs, a customer care center, and a full range of digital and mobile-based banking services. Additionally, Webster Investment Services provides investment services to consumers and small business owners within Webster’s targeted markets and retail footprint. At December 31, 2024, Consumer Banking had $11.9 billion in loans and $27.3 billion in deposits, as well as $8.0 billion in assets under administration.

Consumer Banking Operating Results:

 

 

 

 

 

 

 

Three months ended December 31,

 

Percent

(In thousands)

 

2024

2023

 

(Unfavorable)

Net interest income

 

$202,165

$213,913

 

 

(5.5) %

 

Non-interest income

 

26,969

27,426

 

 

(1.7)

 

Operating revenue

 

229,134

241,339

 

 

(5.1)

 

Non-interest expense

 

119,123

116,413

 

 

(2.3)

 

Pre-tax, pre-provision net revenue

 

$110,011

$124,926

 

 

(11.9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At December 31,

 

Percent

(In millions)

 

2024

2023

 

Increase

Loans

 

$11,886

$11,235

 

 

5.8 %

 

Deposits

 

27,333

26,252

 

 

4.1

 

AUA (off balance sheet)

 

7,997

7,876

 

 

1.5

 

Pre-tax, pre-provision net revenue decreased $14.9 million, to $110.0 million, in the quarter as compared to prior year. Net interest income decreased $11.7 million, to $202.2 million, primarily driven by higher rates paid on deposits, partially offset by higher loan yields, as well as loan and deposit balance growth. Non-interest income decreased $0.5 million, to $27.0 million, primarily driven by lower loan servicing fees and a decrease in gains on sales of loans, partially offset by increased deposit related fees and higher miscellaneous fee income. Non-interest expense increased $2.7 million, to $119.1 million, primarily driven by continued investments in technology, partially offset by lower overall operating expenses.

***

Webster Financial Corporation (NYSE:WBS) is the holding company for Webster Bank, N.A. Webster 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 Healthcare Financial Services, one of the country’s largest providers of employee benefit solutions and administrator of medical insurance claim settlements. Headquartered in Stamford, CT, Webster is a values-driven organization with $79 billion in assets. Its core footprint spans the northeastern U.S. from New York to Massachusetts, with certain businesses operating in extended geographies. Webster Bank is a member of the FDIC and an equal housing lender. For more information about Webster, including past press releases and the latest annual report, visit the Webster website at www.websterbank.com.

Conference Call

A conference call covering Webster’s fourth quarter 2024 earnings announcement will be held today, Friday, January 17, 2025, at 9:00 a.m. Eastern Time. To listen to the live call, please dial 888-330-2446, or 240-789-2732 for international callers. The passcode is 8607257. The webcast, along with related slides, will be available via Webster’s Investor Relations website at investors.websterbank.com. A replay of the conference call will be available for one week via the website listed above, beginning at approximately 12:00 noon (Eastern Time) on January 17, 2025. To access the replay, dial 800-770-2030, or 609-800-9909 for international callers. The replay conference ID number is 8607257.

Forward-Looking Statements

This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “believes,” “anticipates,” “expects,” “intends,” “targeted,” “continue,” “remain,” “will,” “should,” “may,” “plans,” “estimates,” and similar references to future periods. However, these words are not the exclusive means of identifying such statements. Examples of forward-looking statements include but are not limited to: projections of revenues, expenses, expense savings, income or loss, earnings or loss per share, and other financial items; statements of plans, objectives, and expectations of Webster or its management or Board of Directors; statements of future economic performance; and statements of assumptions underlying such statements. Forward-looking statements are based on Webster’s current expectations and assumptions regarding its business, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. Webster’s actual results may differ materially from those contemplated by the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance. Factors that could cause Webster’s actual results to differ from those discussed in any forward-looking statements include, but are not limited to: Webster’s ability to successfully execute its business plan and strategic initiatives, and manage any risks or uncertainties; continued regulatory changes or other mitigation efforts taken by government agencies in response to volatility in the banking industry; volatility in Webster’s stock price due to investor sentiment and perception of the banking industry; local, regional, national, and international economic conditions, and the impact they may have on Webster or its customers; volatility and disruption in national and international financial markets, including as a result of geopolitical conflict; the impact of unrealized losses in Webster’s available-for-sale securities portfolio; changes in laws and regulations, or existing laws and regulations that Webster becomes subject to, including those concerning banking, taxes, dividends, securities, insurance, cybersecurity, and healthcare administration, with which Webster and its subsidiaries must comply; adverse conditions in the securities markets that could lead to impairment in the value of Webster’s securities portfolio; inflation, monetary fluctuations, and changes in interest rates, including the impact of such changes on economic conditions, customer behavior, funding costs, and Webster’s loans and leases and securities portfolios; possible changes in governmental monetary and fiscal policies, including, but not limited to, the Federal Reserve policies in connection with continued inflationary pressures; the effects of any U.S. federal government shutdown; the impact of any new regulatory, policy, or enforcement developments resulting from the change in U.S. presidential administration; the timely development and acceptance of new products and services, and the perceived value of those products and services by customers; changes in deposit flows, consumer spending, borrowings, and savings habits; Webster’s ability to implement new technologies and maintain secure and reliable information and technology systems; the effects of any cybersecurity threats, attacks or disruptions, fraudulent activity, or other data breaches or security events, including those involving Webster’s third-party vendors and service providers; performance by Webster’s counterparties and third-party vendors; Webster’s ability to increase market share and control expenses; changes in the competitive environment among banks, financial holding companies, and other traditional and non-traditional financial service providers; Webster’s ability to maintain adequate sources of funding and liquidity; Webster’s ability to attract, develop, motivate, and retain skilled employees; changes in loan demand or real estate values; changes in the mix of loan geographies, sectors, or types and the level of nonperforming assets, charge-offs, and delinquencies; changes in our estimates of current expected credit losses based upon periodic review under relevant regulatory and accounting requirements; the effect of changes in accounting policies and practices applicable to Webster, including the impacts of recently adopted accounting guidance; legal and regulatory developments, including any due to judicial decisions, the resolution of legal proceedings or regulatory or other governmental inquiries, and the results of regulatory examinations or reviews; Webster’s ability to navigate differing environmental, social, governmental, and sustainability concerns among its stakeholders and other activists; Webster’s ability to assess and monitor the effect of artificial intelligence on its business and operations; the occurrence of natural disasters, severe weather events, and public health crises, and any governmental or societal responses thereto; and the other factors that are described in Webster’s Annual Report on Form 10-K for the year ended December 31, 2023, and subsequent filings with the U.S. Securities and Exchange Commission. Any forward-looking statement made by Webster in this release speaks only as of the date on which it is made. Factors or events that could cause Webster’s actual results to differ may emerge from time to time, and it is not possible for Webster to predict all of them. Webster undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

Non-GAAP Financial Measures

In addition to results presented in accordance with GAAP, this press release contains certain non-GAAP financial measures. A reconciliation of net income, return on average tangible common stockholders’ equity, and other performance ratios, in each case as adjusted, is included in the accompanying selected financial highlights table.

Webster believes that providing certain non-GAAP financial measures provides investors with information useful in understanding its financial performance, performance trends, and financial position. Webster utilizes these measures for internal planning and forecasting purposes. Webster, as well as securities analysts, investors, and other interested parties, also use these measures to compare peer company operating performance. Webster believes that its presentation and discussion, together with the accompanying reconciliations, provides additional clarity of factors and trends affecting its business and allows investors to view performance in a manner similar to management.

The efficiency ratio, which represents the costs expended to generate a dollar of revenue, is calculated excluding certain non-operational items. The return on average tangible common stockholders’ equity (“ROATCE”) represents net income available to common stockholders, adjusted for the tax-effected amortization of intangible assets, as a percentage of average stockholders’ equity less average preferred stock and average goodwill and net intangible assets. The tangible equity ratio represents stockholders’ equity less goodwill and net intangible assets divided by total assets less goodwill and net intangible assets. The tangible common equity ratio represents stockholders’ equity less preferred stock and goodwill and net intangible assets divided by total assets less goodwill and net intangible assets. Tangible book value per common share represents stockholders’ equity less preferred stock and goodwill and net intangible assets divided by common shares outstanding at the end of the period. Core deposits reflect total deposits less certificates of deposit and brokered certificates of deposit. Adjusted pre-tax net income, adjusted net income available to common stockholders, adjusted diluted earnings per share (“EPS”), adjusted ROATCE, and adjusted return on average assets (“ROAA”) are calculated excluding losses on sales of investment securities, which have been tax-effected, and a deferred tax valuation adjustment.

These non-GAAP measures should not be considered a substitute for GAAP basis measures and results, and Webster strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.

Refer the tables beginning on page 19 for Non-GAAP to GAAP reconciliations.

WEBSTER FINANCIAL CORPORATIONSelected Financial Highlights (unaudited) At or for the Three Months Ended (In thousands, except per share data) December 31,2024 September 30,2024 June 30,2024 March 31,2024 December 31,2023   Income and performance ratios: Net income $

177,766

$

192,985

$

181,633

$

216,323

$

185,393

Net income available to common stockholders

173,603

188,823

177,471

212,160

181,230

Earnings per diluted common share

1.01

1.10

1.03

1.23

1.05

Return on average assets (annualized)

0.91

%

1.01

%

0.96

%

1.15

%

1.01

%

Return on average tangible common stockholders' equity (annualized) (1)

12.73

14.29

14.17

16.30

14.49

Return on average common stockholders’ equity (annualized)

7.80

8.67

8.40

10.01

9.03

Non-interest income as a percentage of total revenue

7.94

8.92

6.88

14.89

10.05

  Asset quality: Allowance for credit losses on loans and leases $

689,566

$

687,798

$

669,355

$

641,442

$

635,737

Nonperforming assets

461,751

427,274

374,884

289,254

218,600

Allowance for credit losses on loans and leases / total loans and leases

1.31

%

1.32

%

1.30

%

1.26

%

1.25

%

Net charge-offs / average loans and leases (annualized)

0.47

0.27

0.26

0.29

0.27

Nonperforming loans and leases / total loans and leases

0.88

0.82

0.72

0.56

0.41

Nonperforming assets / total loans and leases plus other real estate owned and repossessed assets

0.88

0.82

0.73

0.57

0.43

Allowance for credit losses on loans and leases / nonperforming loans and leases

149.47

161.60

181.48

226.17

303.39

  Other ratios: Tangible equity (1)

7.82

%

7.85

%

7.56

%

7.54

%

8.12

%

Tangible common equity (1)

7.45

7.48

7.18

7.15

7.73

Tier 1 risk-based capital (2)

12.01

11.77

11.09

11.08

11.62

Total risk-based capital (2)

14.20

14.06

13.28

13.21

13.72

Common equity tier 1 risk-based capital (2)

11.50

11.25

10.59

10.57

11.11

Stockholders’ equity / total assets

11.56

11.58

11.46

11.49

11.60

Net interest margin

3.39

3.36

3.32

3.35

3.42

Efficiency ratio (1)

44.80

45.49

46.22

45.25

43.04

  Equity and share related: Common stockholders' equity $

8,849,235

$

8,914,071

$

8,525,289

$

8,463,519

$

8,406,017

Book value per common share

51.63

52.00

49.74

49.07

48.87

Tangible book value per common share (1)

32.95

33.26

30.82

30.22

32.39

Common stock closing price

55.22

46.61

43.59

50.77

50.76

Dividends declared per common share

0.40

0.40

0.40

0.40

0.40

Common shares issued and outstanding

171,391

171,428

171,402

172,464

172,022

Weighted-average common shares outstanding - Basic

169,589

169,569

169,675

170,445

170,415

Weighted-average common shares outstanding - Diluted

170,005

169,894

169,937

170,704

170,623

  (1) See "Non-GAAP to GAAP Reconciliations" section beginning on page 19. (2) Presented as preliminary for December 31, 2024, and actual for the remaining periods. WEBSTER FINANCIAL CORPORATIONConsolidated Balance Sheets (unaudited) (In thousands) December 31,2024 September 30,2024 December 31,2023 Assets: Cash and due from banks $

388,060

 

$

721,261

 

$

429,323

 

Interest-bearing deposits

1,686,374

 

2,476,290

 

1,286,472

 

Investment securities: Available-for-sale

9,006,600

 

8,594,978

 

8,959,729

 

Held-to-maturity, net

8,444,191

 

8,565,936

 

7,074,588

 

Total investment securities, net

17,450,791

 

17,160,914

 

16,034,317

 

Loans held for sale

27,634

 

117,615

 

6,541

 

Loans and leases: Commercial

20,676,965

 

20,120,992

 

19,772,102

 

Commercial real estate

21,391,036

 

21,691,377

 

21,157,732

 

Residential mortgages

8,853,669

 

8,576,612

 

8,227,923

 

Consumer

1,583,498

 

1,558,034

 

1,568,295

 

Total loans and leases

52,505,168

 

51,947,015

 

50,726,052

 

Allowance for credit losses on loans and leases

(689,566

)

(687,798

)

(635,737

)

Total loans and leases, net

51,815,602

 

51,259,217

 

50,090,315

 

Federal Home Loan Bank and Federal Reserve Bank stock

321,343

 

360,795

 

326,882

 

Premises and equipment, net

406,963

 

411,070

 

429,561

 

Goodwill and other intangible assets, net

3,202,369

 

3,212,050

 

2,834,600

 

Cash surrender value of life insurance policies

1,251,622

 

1,247,624

 

1,247,938

 

Deferred tax assets, net

316,856

 

273,174

 

369,212

 

Accrued interest receivable and other assets

2,157,459

 

2,213,890

 

1,890,088

 

Total assets $

79,025,073

 

$

79,453,900

 

$

74,945,249

 

  Liabilities and Stockholders' Equity: Deposits: Demand $

10,316,501

 

$

10,744,524

 

$

10,732,516

 

Health savings accounts

8,951,031

 

8,951,383

 

8,287,889

 

Interest-bearing checking

9,834,790

 

10,016,651

 

8,994,095

 

Money market

20,433,250

 

20,460,382

 

17,662,826

 

Savings

6,982,554

 

6,921,459

 

6,642,499

 

Certificates of deposit

6,041,329

 

6,020,031

 

5,574,048

 

Brokered certificates of deposit

2,193,625

 

1,400,000

 

2,890,411

 

Total deposits

64,753,080

 

64,514,430

 

60,784,284

 

Securities sold under agreements to repurchase and other borrowings

344,168

 

100,232

 

458,387

 

Federal Home Loan Bank advances

2,110,108

 

3,110,205

 

2,360,018

 

Long-term debt

909,185

 

910,963

 

1,048,820

 

Accrued expenses and other liabilities

1,775,318

 

1,620,020

 

1,603,744

 

Total liabilities

69,891,859

 

70,255,850

 

66,255,253

 

Preferred stock

283,979

 

283,979

 

283,979

 

Common stockholders' equity

8,849,235

 

8,914,071

 

8,406,017

 

Total stockholders’ equity

9,133,214

 

9,198,050

 

8,689,996

 

Total liabilities and stockholders' equity $

79,025,073

 

$

79,453,900

 

$

74,945,249

 

WEBSTER FINANCIAL CORPORATIONConsolidated Statements of Income (unaudited) Three Months Ended December 31, Twelve Months Ended December 31, (In thousands, except per share data)

2024

 

2023

 

2024

 

2023

 

Interest income: Interest and fees on loans and leases $

783,140

 

$

789,423

 

$

3,182,466

 

$

3,071,378

 

Interest on investment securities

189,801

 

128,924

 

674,935

 

450,888

 

Loans held for sale

2,836

 

280

 

13,911

 

734

 

Other interest and dividends

19,310

 

14,520

 

55,974

 

105,260

 

Total interest income

995,087

 

933,147

 

3,927,286

 

3,628,260

 

Interest expense: Deposits

358,895

 

325,793

 

1,427,204

 

1,021,418

 

Borrowings

27,724

 

36,333

 

161,695

 

269,573

 

Total interest expense

386,619

 

362,126

 

1,588,899

 

1,290,991

 

Net interest income

608,468

 

571,021

 

2,338,387

 

2,337,269

 

Provision for credit losses

63,500

 

36,000

 

222,000

 

150,747

 

Net interest income after provision for loan and lease losses

544,968

 

535,021

 

2,116,387

 

2,186,522

 

Non-interest income: Deposit service fees

38,665

 

37,459

 

161,144

 

169,318

 

Loan and lease related fees

18,770

 

21,362

 

76,384

 

84,861

 

Wealth and investment services

8,387

 

7,767

 

33,234

 

28,999

 

Cash surrender value of life insurance policies

7,387

 

6,587

 

27,712

 

26,228

 

(Loss) on sale of investment securities, net

(56,886

)

(16,825

)

(136,224

)

(33,620

)

Other income

36,184

 

7,465

 

89,649

 

38,551

 

Total non-interest income

52,507

 

63,815

 

251,899

 

314,337

 

Non-interest expense: Compensation and benefits

192,668

 

184,914

 

762,794

 

711,752

 

Occupancy

18,740

 

18,478

 

72,161

 

77,520

 

Technology and equipment

47,182

 

46,486

 

195,017

 

197,928

 

Marketing

6,139

 

5,176

 

18,751

 

18,622

 

Professional and outside services

15,205

 

18,804

 

58,253

 

107,497

 

Intangible assets amortization

9,681

 

8,618

 

36,082

 

36,207

 

Deposit insurance

16,069

 

58,725

 

68,912

 

98,081

 

Other expenses

34,693

 

36,020

 

139,309

 

168,748

 

Total non-interest expense

340,377

 

377,221

 

1,351,279

 

1,416,355

 

Income before income taxes

257,098

 

221,615

 

1,017,007

 

1,084,504

 

Income tax expense

79,332

 

36,222

 

248,300

 

216,664

 

Net income

177,766

 

185,393

 

768,707

 

867,840

 

Preferred stock dividends

(4,163

)

(4,163

)

(16,650

)

(16,650

)

Net income available to common stockholders $

173,603

 

$

181,230

 

$

752,057

 

$

851,190

 

  Weighted-average common shares outstanding - Diluted

170,005

 

170,623

 

170,192

 

171,883

 

  Earnings per common share: Basic $

1.01

 

$

1.05

 

$

4.38

 

$

4.91

 

Diluted

1.01

 

1.05

 

4.37

 

4.91

 

WEBSTER FINANCIAL CORPORATIONFive Quarter Consolidated Statements of Income (unaudited) Three Months Ended (In thousands, except per share data) December 31,2024 September 30,2024 June 30,2024 March 31,2024 December 31,2023 Interest income: Interest and fees on loans and leases $

783,140

 

$

809,184

 

$

798,097

 

$

792,045

 

$

789,423

 

Interest on investment securities

189,801

 

176,722

 

160,827

 

147,585

 

128,924

 

Loans held for sale

2,836

 

5,400

 

5,593

 

82

 

280

 

Other interest and dividends

19,310

 

12,757

 

11,769

 

12,138

 

14,520

 

Total interest income

995,087

 

1,004,063

 

976,286

 

951,850

 

933,147

 

Interest expense: Deposits

358,895

 

371,075

 

361,263

 

335,971

 

325,793

 

Borrowings

27,724

 

43,105

 

42,726

 

48,140

 

36,333

 

Total interest expense

386,619

 

414,180

 

403,989

 

384,111

 

362,126

 

Net interest income

608,468

 

589,883

 

572,297

 

567,739

 

571,021

 

Provision for credit losses

63,500

 

54,000

 

59,000

 

45,500

 

36,000

 

Net interest income after provision for loan and lease losses

544,968

 

535,883

 

513,297

 

522,239

 

535,021

 

Non-interest income: Deposit service fees

38,665

 

38,863

 

41,027

 

42,589

 

37,459

 

Loan and lease related fees

18,770

 

18,513

 

19,334

 

19,767

 

21,362

 

Wealth and investment services

8,387

 

8,367

 

8,556

 

7,924

 

7,767

 

Cash surrender value of life insurance policies

7,387

 

8,020

 

6,359

 

5,946

 

6,587

 

(Loss) on sale of investment securities, net

(56,886

)

(19,597

)

(49,915

)

(9,826

)

(16,825

)

Other income

36,184

 

3,575

 

16,937

 

32,953

 

7,465

 

Total non-interest income

52,507

 

57,741

 

42,298

 

99,353

 

63,815

 

Non-interest expense: Compensation and benefits

192,668

 

194,736

 

186,850

 

188,540

 

184,914

 

Occupancy

18,740

 

18,879

 

15,103

 

19,439

 

18,478

 

Technology and equipment

47,182

 

56,696

 

45,303

 

45,836

 

46,486

 

Marketing

6,139

 

4,224

 

4,107

 

4,281

 

5,176

 

Professional and outside services

15,205

 

16,001

 

14,066

 

12,981

 

18,804

 

Intangible assets amortization

9,681

 

8,491

 

8,716

 

9,194

 

8,618

 

Deposit insurance

16,069

 

13,555

 

15,065

 

24,223

 

58,725

 

Other expenses

34,693

 

36,376

 

36,811

 

31,429

 

36,020

 

Total non-interest expense

340,377

 

348,958

 

326,021

 

335,923

 

377,221

 

Income before income taxes

257,098

 

244,666

 

229,574

 

285,669

 

221,615

 

Income tax expense

79,332

 

51,681

 

47,941

 

69,346

 

36,222

 

Net income

177,766

 

192,985

 

181,633

 

216,323

 

185,393

 

Preferred stock dividends

(4,163

)

(4,162

)

(4,162

)

(4,163

)

(4,163

)

Net income available to common stockholders $

173,603

 

$

188,823

 

$

177,471

 

$

212,160

 

$

181,230

 

  Weighted-average common shares outstanding - Diluted

170,005

 

169,894

 

169,937

 

170,704

 

170,623

 

  Earnings per common share: Basic $

1.01

 

$

1.10

 

$

1.03

 

$

1.23

 

$

1.05

 

Diluted

1.01

 

1.10

 

1.03

 

1.23

 

1.05

 

WEBSTER FINANCIAL CORPORATIONConsolidated Average Balances, Interest, Yields/ Rates, and Net Interest Margin on a Fully Tax-equivalent Basis (unaudited) Three Months Ended December 31,

2024

2023

(Dollars in thousands) Average balance Interest Yield/rate Average balance Interest Yield/rate Assets: Interest-earning assets: Loans and leases $

52,255,431

$

794,271

 

5.97

%

$

50,352,340

$

800,679

 

6.24

%

Investment securities (1)

17,982,632

192,334

 

4.28

16,194,457

135,498

 

3.35

Federal Home Loan and Federal Reserve Bank stock

301,218

4,732

 

6.25

308,505

5,581

 

7.18

Interest-bearing deposits

1,201,613

14,578

 

4.75

649,104

8,939

 

5.39

Loans held for sale

122,449

2,836

 

9.27

7,130

280

 

n/m

Total interest-earning assets

71,863,343

$

1,008,751

 

5.53

%

67,511,536

$

950,977

 

5.54

%

Non-interest-earning assets (1)

6,493,521

5,620,527

Total assets $

78,356,864

$

73,132,063

  Liabilities and Stockholders' Equity: Interest-bearing liabilities: Demand deposits $

10,568,678

$

-

 

-

%

$

11,067,121

$

-

 

-

%

Health savings accounts

8,919,071

3,485

 

0.16

8,219,431

3,123

 

0.15

Interest-bearing checking, money market and savings

37,464,574

271,010

 

2.88

33,156,966

239,875

 

2.87

Certificates of deposit and brokered deposits

7,863,067

84,400

 

4.27

7,538,131

82,795

 

4.36

Total deposits

64,815,390

358,895

 

2.20

59,981,649

325,793

 

2.15

  Securities sold under agreements to repurchase and other borrowings

191,265

853

 

1.74

221,437

1,162

 

2.05

Federal Home Loan Bank advances

1,535,140

19,063

 

4.86

1,815,493

25,659

 

5.53

Long-term debt (1)

886,648

7,808

 

3.52

1,020,901

9,512

 

3.73

Total borrowings

2,613,053

27,724

 

4.18

3,057,831

36,333

 

4.68

Total interest-bearing liabilities

67,428,443

$

386,619

 

2.28

%

63,039,480

$

362,126

 

2.28

%

Non-interest-bearing liabilities (1)

1,742,339

1,779,785

Total liabilities

69,170,782

64,819,265

  Preferred stock

283,979

283,979

Common stockholders' equity

8,902,103

8,028,819

Total stockholders' equity

9,186,082

8,312,798

Total liabilities and stockholders' equity $

78,356,864

$

73,132,063

Tax-equivalent net interest income

622,132

 

588,851

 

Less: Tax-equivalent adjustments

(13,664

)

(17,830

)

Net interest income $

608,468

 

$

571,021

 

Net interest margin

3.39

%

3.42

%

  (1) In order to provide the users of the Company’s financial statements with a more transparent view of the actual consolidated average balances that are used in the calculation of net interest margin, the Company has recast, in the above table, certain consolidated average balances for the three months ended December 31, 2023, to reflect a change in presentation being applied retrospectively. Specifically, adjustments were made to exclude unsettled trades of $142.4 million and available-for-sale unrealized losses of $1.1 billion from investment securities, and to exclude a $28.8 million basis adjustment related to a de-designated fair value hedge from long-term debt. Rather, effective as of December 31, 2024, these amounts are being presented in non-interest-earning assets and non-interest-bearing liabilities, respectively. There was no change to the related yields/rates, net interest income, or net interest margin that had been previously disclosed. WEBSTER FINANCIAL CORPORATIONConsolidated Average Balances, Interest, Yields/ Rates, and Net Interest Margin on a Fully Tax-equivalent Basis (unaudited) Twelve Months Ended December 31,

2024

2023

(Dollars in thousands) Average balance Interest Yield/rate Average balance Interest Yield/rate Assets: Interest-earning assets: Loans and leases $

51,597,443

$

3,224,653

 

6.25

%

$

50,637,569

$

3,113,709

 

6.15

%

Investment securities (1)

17,356,753

690,265

 

3.98

15,626,684

477,496

 

3.06

Federal Home Loan and Federal Reserve Bank stock

330,418

18,633

 

5.64

408,673

24,785

 

6.06

Interest-bearing deposits

723,688

37,341

 

5.16

1,564,255

80,475

 

5.14

Loans held for sale

143,812

13,911

 

9.67

28,710

734

 

2.56

Total interest-earning assets

70,152,114

$

3,984,803

 

5.68

%

68,265,891

$

3,697,199

 

5.42

%

Non-interest-earning assets (1)

6,461,020

5,557,991

Total assets $

76,613,134

$

73,823,882

  Liabilities and Stockholders' Equity: Interest-bearing liabilities: Demand deposits $

10,387,807

$

-

 

-

%

$

11,596,949

$

-

 

-

%

Health savings accounts

8,650,485

13,139

 

0.15

8,249,332

12,366

 

0.15

Interest-bearing checking, money market and savings

35,789,961

1,070,949

 

2.99

31,874,457

756,521

 

2.37

Certificates of deposit and brokered deposits

7,597,612

343,116

 

4.52

6,531,610

252,531

 

3.87

Total deposits

62,425,865

1,427,204

 

2.29

58,252,348

1,021,418

 

1.75

  Securities sold under agreements to repurchase and other borrowings

196,328

4,113

 

2.09

378,171

9,102

 

2.41

Federal Home Loan Bank advances

2,296,048

125,329

 

5.46

4,275,394

222,537

 

5.21

Long-term debt (1)

903,603

32,253

 

3.57

1,027,869

37,934

 

3.69

Total borrowings

3,395,979

161,695

 

4.76

5,681,434

269,573

 

4.74

Total interest-bearing liabilities

65,821,844

$

1,588,899

 

2.41

%

63,933,782

$

1,290,991

 

2.02

%

Non-interest-bearing liabilities (1)

1,871,615

1,566,145

Total liabilities

67,693,459

65,499,927

  Preferred stock

283,979

283,979

Common stockholders' equity

8,635,696

8,039,976

Total stockholders' equity

8,919,675

8,323,955

Total liabilities and stockholders' equity $

76,613,134

$

73,823,882

Tax-equivalent net interest income

2,395,904

 

2,406,208

 

Less: Tax-equivalent adjustments

(57,517

)

(68,939

)

Net interest income $

2,338,387

 

$

2,337,269

 

Net interest margin

3.42

%

3.52

%

  (1) In order to provide the users of the Company’s financial statements with a more transparent view of the actual consolidated average balances that are used in the calculation of net interest margin, the Company has recast, in the above table, certain consolidated average balances for the twelve months ended December 31, 2023, to reflect a change in presentation being applied retrospectively. Specifically, adjustments were made to exclude unsettled trades of $108.9 million and available-for-sale unrealized losses of $895.8 million from investment securities, and to exclude a $30.8 million basis adjustment related to a de-designated fair value hedge from long-term debt. Rather, effective as of December 31, 2024, these amounts are being presented in non-interest-earning assets and non-interest-bearing liabilities, respectively. There was no change to the related yields/rates, net interest income, or net interest margin that had been previously disclosed. WEBSTER FINANCIAL CORPORATIONFive Quarter Loans and Leases (unaudited) (Dollars in thousands) December 31,2024 September 30,2024 June 30,2024 March 31,2024 December 31,2023 Total loans and leases (actual): Commercial non-mortgage $

19,272,958

 

$

18,657,089

 

$

18,021,758

 

$

17,976,128

 

$

18,214,261

 

Asset-based lending

1,404,007

 

1,463,903

 

1,470,675

 

1,492,886

 

1,557,841

 

Commercial real estate

21,391,036

 

21,691,377

 

22,277,813

 

21,869,502

 

21,157,732

 

Residential mortgages

8,853,669

 

8,576,612

 

8,284,297

 

8,226,154

 

8,227,923

 

Consumer

1,583,498

 

1,558,034

 

1,518,922

 

1,533,972

 

1,568,295

 

Total loans and leases

52,505,168

 

51,947,015

 

51,573,465

 

51,098,642

 

50,726,052

 

Allowance for credit losses on loans and leases

(689,566

)

(687,798

)

(669,355

)

(641,442

)

(635,737

)

Total loans and leases, net $

51,815,602

 

$

51,259,217

 

$

50,904,110

 

$

50,457,200

 

$

50,090,315

 

  Total loans and leases (average): Commercial non-mortgage $

18,919,934

 

$

18,166,258

 

$

17,995,654

 

$

18,235,402

 

$

18,181,417

 

Asset-based lending

1,449,743

 

1,452,794

 

1,473,175

 

1,523,616

 

1,588,350

 

Commercial real estate

21,572,682

 

22,215,293

 

22,186,566

 

21,403,765

 

20,764,834

 

Residential mortgages

8,740,658

 

8,390,613

 

8,252,397

 

8,225,151

 

8,240,390

 

Consumer

1,572,414

 

1,527,235

 

1,527,007

 

1,550,484

 

1,577,349

 

Total loans and leases $

52,255,431

 

$

51,752,193

 

$

51,434,799

 

$

50,938,418

 

$

50,352,340

 

WEBSTER FINANCIAL CORPORATIONFive Quarter Nonperforming Assets and Past Due Loans and Leases (unaudited) (Dollars in thousands) December 31,2024 September 30,2024 June 30,2024 March 31,2024 December 31,2023 Nonperforming loans and leases: Commercial non-mortgage $

268,354

$

215,834

$

210,906

$

203,626

$

134,617

Asset-based lending

20,815

29,791

29,791

34,915

35,090

Commercial real estate

138,642

150,711

96,337

14,323

11,314

Residential mortgages

12,500

9,098

11,345

8,407

5,591

Consumer

21,015

20,183

20,457

22,341

22,932

Total nonperforming loans and leases $

461,326

$

425,617

$

368,836

$

283,612

$

209,544

  Other real estate owned and repossessed assets: Commercial non-mortgage $

425

$

504

$

5,013

$

5,540

$

8,954

Residential mortgages

-

221

-

-

-

Consumer

-

932

1,035

102

102

Total other real estate owned and repossessed assets $

425

$

1,657

$

6,048

$

5,642

$

9,056

Total nonperforming assets $

461,751

$

427,274

$

374,884

$

289,254

$

218,600

  Past due 30-89 days: Commercial non-mortgage $

16,619

$

45,123

$

134,794

$

15,365

$

7,071

Commercial real estate

48,725

36,110

10,284

72,999

9,002

Residential mortgages

14,113

18,153

13,008

17,580

21,047

Consumer

9,122

9,471

8,185

6,824

9,417

Total past due 30-89 days $

88,579

$

108,857

$

166,271

$

112,768

$

46,537

Past due 90 days or more and accruing

-

71

9

12,460

52

Total past due loans and leases $

88,579

$

108,928

$

166,280

$

125,228

$

46,589

WEBSTER FINANCIAL CORPORATIONFive Quarter Changes in the Allowance for Credit Losses on Loans and Leases (unaudited) Three Months Ended (Dollars in thousands) December 31,2024 September 30,2024 June 30,2024 March 31,2024 December 31,2023 ACL on loans and leases, beginning balance $

687,798

$

669,355

$

641,442

$

635,737

$

635,438

Provision

62,639

53,869

61,041

43,194

34,300

Charge-offs: Commercial portfolio

63,281

36,362

33,356

38,461

28,794

Consumer portfolio

1,265

997

1,418

1,330

6,878

Total charge-offs

64,546

37,359

34,774

39,791

35,672

Recoveries: Commercial portfolio

2,779

377

360

553

396

Consumer portfolio

896

1,556

1,286

1,749

1,275

Total recoveries

3,675

1,933

1,646

2,302

1,671

Total net charge-offs

60,871

35,426

33,128

37,489

34,001

ACL on loans and leases, ending balance $

689,566

$

687,798

$

669,355

$

641,442

$

635,737

ACL on unfunded loan commitments, ending balance

22,593

22,598

22,456

24,495

24,734

ACL, ending balance $

712,159

$

710,396

$

691,811

$

665,937

$

660,471

WEBSTER FINANCIAL CORPORATIONNon-GAAP to GAAP Reconciliations   Three Months Ended (In thousands, except per share data) December 31,2024 September 30,2024 June 30,2024 March 31,2024 December 31,2023 Efficiency ratio: Non-interest expense $

340,377

 

$

348,958

 

$

326,021

 

$

335,923

 

$

377,221

 

Less: Foreclosed property activity

(32

)

(687

)

(364

)

(330

)

(96

)

Intangible assets amortization

9,681

 

8,491

 

8,716

 

9,194

 

8,618

 

Operating lease depreciation

121

 

197

 

560

 

663

 

900

 

FDIC special assessment

-

 

(1,544

)

-

 

11,862

 

47,164

 

Merger related expenses (1)

-

 

-

 

-

 

3,139

 

30,679

 

Strategic restructuring costs and other

-

 

22,169

 

-

 

-

 

-

 

Adjusted non-interest expense $

330,607

 

$

320,332

 

$

317,109

 

$

311,395

 

$

289,956

 

Net interest income $

608,468

 

$

589,883

 

$

572,297

 

$

567,739

 

$

571,021

 

Add: Tax-equivalent adjustment

13,664

 

13,659

 

14,315

 

15,879

 

17,830

 

Non-interest income

52,507

 

57,741

 

42,298

 

99,353

 

63,815

 

Other income (2)

6,564

 

7,448

 

7,802

 

7,626

 

5,099

 

Less: Operating lease depreciation

121

 

197

 

560

 

663

 

900

 

(Loss) on sale of investment securities, net

(56,886

)

(19,597

)

(49,915

)

(9,826

)

(16,825

)

Exit of non-core operations

-

 

(15,977

)

-

 

-

 

-

 

Net gain on sale of mortgage servicing rights

-

 

-

 

-

 

11,655

 

-

 

Adjusted income $

737,968

 

$

704,108

 

$

686,067

 

$

688,105

 

$

673,690

 

Efficiency ratio

44.80

 

%

45.49

 

%

46.22

 

%

45.25

 

%

43.04

 

%

  ROATCE: Net income $

177,766

 

$

192,985

 

$

181,633

 

$

216,323

 

$

185,393

 

Less: Preferred stock dividends

4,163

 

4,162

 

4,162

 

4,163

 

4,163

 

Add: Intangible assets amortization, tax-effected

7,648

 

6,708

 

6,886

 

7,263

 

6,808

 

Adjusted net income $

181,251

 

$

195,531

 

$

184,357

 

$

219,423

 

$

188,038

 

Adjusted net income, annualized basis $

725,004

 

$

782,124

 

$

737,428

 

$

877,692

 

$

752,152

 

Average stockholders' equity $

9,186,082

 

$

8,995,134

 

$

8,733,737

 

$

8,759,992

 

$

8,312,798

 

Less: Average preferred stock

283,979

 

283,979

 

283,979

 

283,979

 

283,979

 

Average goodwill and other intangible assets, net

3,207,554

 

3,238,115

 

3,246,940

 

3,090,751

 

2,838,770

 

Average tangible common stockholders' equity $

5,694,549

 

$

5,473,040

 

$

5,202,818

 

$

5,385,262

 

$

5,190,049

 

Return on average tangible common stockholders' equity

12.73

 

%

14.29

 

%

14.17

 

%

16.30

 

%

14.49

 

%

  (1) Merger related expenses reflect Ametros acquisition expenses for the three months ended March 31, 2024, and primarily Sterling merger expenses for the three months ended December 31, 2023. (2) Other income reflects a tax-equivalent adjustment on income generated from low income housing tax-credit investments.   (In thousands, except per share data) December 31,2024 September 30,2024 June 30,2024 March 31,2024 December 31,2023 Tangible equity: Stockholders' equity $

9,133,214

$

9,198,050

$

8,809,268

$

8,747,498

$

8,689,996

Less: Goodwill and other intangible assets, net

3,202,369

3,212,050

3,242,193

3,250,909

2,834,600

Tangible stockholders' equity $

5,930,845

$

5,986,000

$

5,567,075

$

5,496,589

$

5,855,396

Total assets $

79,025,073

$

79,453,900

$

76,838,106

$

76,161,693

$

74,945,249

Less: Goodwill and other intangible assets, net

3,202,369

3,212,050

3,242,193

3,250,909

2,834,600

Tangible assets $

75,822,704

$

76,241,850

$

73,595,913

$

72,910,784

$

72,110,649

Tangible equity

7.82

%

7.85

%

7.56

%

7.54

%

8.12

%

  Tangible common equity: Tangible stockholders' equity $

5,930,845

$

5,986,000

$

5,567,075

$

5,496,589

$

5,855,396

Less: Preferred stock

283,979

283,979

283,979

283,979

283,979

Tangible common stockholders' equity $

5,646,866

$

5,702,021

$

5,283,096

$

5,212,610

$

5,571,417

Tangible assets $

75,822,704

$

76,241,850

$

73,595,913

$

72,910,784

$

72,110,649

Tangible common equity

7.45

%

7.48

%

7.18

%

7.15

%

7.73

%

  Tangible book value per common share: Tangible common stockholders' equity $

5,646,866

$

5,702,021

$

5,283,096

$

5,212,610

$

5,571,417

Common shares outstanding

171,391

171,428

171,402

172,464

172,022

Tangible book value per common share $

32.95

$

33.26

$

30.82

$

30.22

$

32.39

  Core deposits: Total deposits $

64,753,080

$

64,514,430

$

62,276,692

$

60,747,743

$

60,784,284

Less: Certificates of deposit

6,041,329

6,020,031

5,861,431

5,928,773

5,574,048

Brokered certificates of deposit

2,193,625

1,400,000

1,910,071

1,008,547

2,890,411

Core deposits $

56,518,126

$

57,094,399

$

54,505,190

$

53,810,423

$

52,319,825

Three Months Ended December 31, 2024 Twelve Months EndedDecember 31, 2024 Adjusted ROATCE: Net income $

177,766

$

768,707

 

Less: Preferred stock dividends

4,163

16,650

 

Add: Intangible assets amortization, tax-effected

7,648

28,505

 

Loss on sale of investment securities, net, tax-effected

41,763

102,126

 

Deferred tax asset valuation adjustment

29,350

29,350

 

Exit of non-core operations, tax-effected

-

11,644

 

Strategic restructuring costs and other, tax-effected

-

16,158

 

FDIC special assessment, tax-effected

-

7,792

 

Ametros acquisition expenses, tax-effected

-

2,360

 

Net (gain) on mortgage servicing rights, tax-effected

-

(8,761

)

Discrete tax adjustment

-

10,929

 

Adjusted net income $

252,364

$

952,160

 

Adjusted net income, annualized basis $

1,009,456

$

952,160

 

Average stockholders' equity $

9,186,082

$

8,919,675

 

Less: Average preferred stock

283,979

283,979

 

Average goodwill and other intangible assets, net

3,207,554

3,195,988

 

Average tangible common stockholders' equity $

5,694,549

$

5,439,708

 

Adjusted return on average tangible common stockholders' equity

17.73

%

17.50

 

%

  Adjusted ROAA: Net income $

177,766

$

768,707

 

Add: Loss on sale of investment securities, net, tax-effected

41,763

102,126

 

Deferred tax asset valuation adjustment

29,350

29,350

 

Exit of non-core operations, tax-effected

-

11,644

 

Strategic restructuring costs and other. tax-effected

-

16,158

 

FDIC special assessment, tax-effected

-

7,792

 

Ametros acquisition expenses, tax-effected

-

2,360

 

Net (gain) on mortgage servicing rights, tax-effected

-

(8,761

)

Discrete tax adjustment

-

10,929

 

Adjusted net income $

248,879

$

940,305

 

Adjusted net income, annualized basis $

995,516

$

940,305

 

Average assets $

78,356,864

$

76,613,134

 

Adjusted return on average assets

1.27

%

1.23

 

%

GAAP to adjusted reconciliation: Three Months Ended December 31, 2024 (In millions, except per share data) Pre-Tax Income Net Income Available to Common Stockholders Diluted EPS Reported (GAAP) $

257.1

 

$

173.6

 

$

1.01

 

Loss on sale of investment securities

56.9

 

41.8

 

0.25

 

Deferred tax asset valuation adjustment

N/A

 

29.4

 

0.17

 

Adjusted (non-GAAP) $

314.0

 

$

244.7

 

$

1.43

 

    Twelve Months Ended December 31, 2024 Pre-Tax Income Net Income Available to Common Stockholders Diluted EPS Reported (GAAP) $

1,017.0

 

$

752.1

 

$

4.37

 

Loss on sale of investment securities, net

136.2

 

102.1

 

0.60

 

Exit of non-core operations

16.0

 

11.6

 

0.07

 

Strategic restructuring costs and other

22.2

 

16.2

 

0.10

 

FDIC special assessment

10.3

 

7.8

 

0.04

 

Ametros acquisition expenses

3.1

 

2.4

 

0.01

 

Net (gain) on mortgage servicing rights

(11.7

)

(8.8

)

(0.05

)

Discrete tax adjustment

N/A

 

10.9

 

0.07

 

Deferred tax asset valuation adjustment

N/A

 

29.4

 

0.17

 

Adjusted (non-GAAP) $

1,193.1

 

$

923.7

 

$

5.38

 

Note: Totals may not sum due to rounding

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250116459890/en/

Media Contact Alice Ferreira, 203-578-2610 acferreira@websterbank.com

Investor Contact Emlen Harmon, 212-309-7646 eharmon@websterbank.com