Webster Financial Corporation ("Webster") (NYSE: WBS), the holding company for Webster Bank, N.A., today announced net income available to common stockholders of $212.2 million, or $1.23 per diluted share, for the quarter ended March 31, 2024, compared to $216.8 million, or $1.24 per diluted share, for the quarter ended March 31, 2023.

First quarter 2024 results include $13.2 million pre-tax ($20.8 million after tax), or $0.121 per diluted share, of net charges related to an increase in the FDIC special assessment estimate, Ametros acquisition expenses, securities repositioning, a net gain on sale of mortgage servicing rights ("MSRs"), and a discrete tax adjustment. Excluding these items, adjusted earnings per diluted share would have been $1.351 for the quarter ended March 31, 2024.

"We reported solid results in the first quarter, including an adjusted return on assets of 1.26 percent and an adjusted return on tangible common equity of 17.85 percent," said John R. Ciulla, chairman and chief executive officer. "We also enhanced our distinctive deposit franchise with the close of the Ametros acquisition, which expands our expertise in healthcare financial services."

Highlights for the first quarter of 2024:

  • Revenue of $667.1 million.
  • Period end loan and lease balance of $51.1 billion, up $0.4 billion or 0.7 percent from prior quarter; consisting of 80.9 percent commercial loans and leases, 19.1 percent consumer loans, and a loan to deposit ratio of 84.1 percent.
  • Period end deposit balance of $60.7 billion, down $36.5 million or 0.1 percent from prior quarter; core deposit growth of $1.5 billion from prior quarter.
  • Provision for credit losses of $45.5 million.
  • Return on average assets of 1.15 percent; adjusted 1.26 percent1.
  • Return on average tangible common equity of 16.30 percent1; adjusted 17.85 percent1.
  • Net interest margin of 3.35 percent, down 7 basis points from prior quarter.
  • Common equity tier 1 ratio of 10.51 percent.
  • Efficiency ratio of 45.25 percent1.
  • Tangible common equity ratio of 7.15 percent1.

"Webster generated strong deposit growth in key businesses this quarter, including HSA Bank and Ametros," said Glenn MacInnes, executive vice president and chief financial officer. "Our funding profile and overall balance sheet strength puts us in a unique position to deliver for our clients.”

Line of Business performance compared to the first quarter of 2023

Effective January 1, 2024, Webster realigned certain of its business banking operations and related accounts from Commercial Banking to Consumer Banking to deliver operational efficiencies and better serve its customers. As a result, $1.5 billion of loans and $2.2 billion of deposits were moved from Commercial Banking to Consumer Banking. Prior period results have been recast accordingly.

Commercial Banking

Webster’s Commercial Banking segment serves businesses that have more than $10 million of revenue through its regional banking, middle market, asset-based lending, equipment finance, commercial real estate, sponsor finance, private banking, and treasury services business units. At March 31, 2024, Commercial Banking had $39.9 billion in loans and leases and $16.1 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 March 31,

 

Favorable/

(In thousands)

 

2024

 

2023

 

(Unfavorable)

Net interest income

 

$

341,942

 

$

360,293

 

(5.1

)%

Non-interest income

 

 

34,280

 

 

33,720

 

1.7

 

Operating revenue

 

 

376,222

 

 

394,013

 

(4.5

)

Non-interest expense

 

 

106,225

 

 

98,833

 

(7.5

)

Pre-tax, pre-provision net revenue

 

$

269,997

 

$

295,180

 

(8.5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent

 

 

At March 31,

 

Increase/

(In millions)

 

2024

 

2023

 

(Decrease)

Loans and leases

 

$

39,883

 

$

40,127

 

(0.6

)%

Deposits

 

 

16,075

 

 

16,287

 

(1.3

)

AUA / AUM (off balance sheet)

 

 

3,017

 

 

2,670

 

13.0

 

Pre-tax, pre-provision net revenue decreased $25.2 million, to $270.0 million, in the quarter as compared to prior year. Net interest income decreased $18.4 million, to $341.9 million, primarily driven by lower deposit balances and higher rates paid on deposits. Non-interest income increased $0.6 million, to $34.3 million, primarily driven by increases in cash management fees and interest rate hedging activities, partially offset by lower net loan servicing income. Non-interest expense increased $7.4 million, to $106.2 million, primarily resulting from continued investments in talent, operational support, and technology to support balance sheet growth.

Healthcare Financial Services

Webster established a Healthcare Financial Services segment this quarter, which is comprised of HSA Bank and the newly acquired Ametros business. 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 March 31, 2024, Healthcare Financial Services had $14.7 billion in total footings comprising $9.5 billion in deposits and $5.2 billion in assets under administration through linked investment accounts.

Healthcare Financial Services Operating Results:

 

 

 

 

 

 

Percent

 

Three months ended March 31,

 

Favorable/

(In thousands)

 

2024

 

2023

 

(Unfavorable)

Net interest income

 

$

86,138

 

$

71,730

 

20.1

%

Non-interest income

 

 

31,061

 

 

24,067

 

29.1

 

Operating revenue

 

 

117,199

 

 

95,797

 

22.3

 

Non-interest expense

 

 

52,127

 

 

43,700

 

(19.3

)

Pre-tax, net revenue

 

$

65,072

 

$

52,097

 

24.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At March 31,

 

Percent

(Dollars in millions)

 

2024

 

2023

 

Increase

Number of accounts (thousands)

 

 

3,344

 

 

3,172

 

5.4

%

 

 

 

 

 

 

 

Deposits

 

$

9,474

 

$

8,273

 

14.5

 

Linked investment accounts (off balance sheet)

 

 

5,194

 

 

3,776

 

37.6

 

Total footings

 

$

14,668

 

$

12,049

 

21.7

 

Pre-tax net revenue increased $13.0 million, to $65.1 million, in the quarter as compared to prior year. The increase in pre-tax net revenue was partially attributable to the acquisition of Ametros in the quarter. Net interest income increased $14.4 million, to $86.1 million, primarily due to $5.7 million from Ametros and an increase in net deposit spread, and deposit growth at HSA Bank. Non-interest income increased $7.0 million, to $31.1 million, primarily due to $4.6 million from Ametros, as well as higher account fees and interchange fees at HSA Bank. Non-interest expense increased $8.4 million, to $52.1 million, primarily due to $7.3 million from Ametros, coupled with higher compensation and benefits expense, and service contract expense related to account growth at HSA Bank.

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 consumer lending 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 web and mobile-based banking services. Additionally, Webster Investments provides investment services to consumers and small business owners within Webster's targeted markets and retail footprint. At March 31, 2024, Consumer Banking had $11.2 billion in loans and $26.9 billion in deposits, as well as $8.1 billion in assets under administration.

Consumer Banking Operating Results:

 

 

 

 

 

 

Percent

 

Three months ended March 31,

 

Favorable/

(In thousands)

 

2024

 

2023

 

(Unfavorable)

Net interest income

 

$

205,777

 

$

234,604

 

 

(12.3

)%

Non-interest income

 

 

33,978

 

 

27,636

 

 

22.9

 

Operating revenue

 

 

239,755

 

 

262,240

 

 

(8.6

)

Non-interest expense

 

 

120,121

 

 

116,555

 

 

(3.1

)

Pre-tax, pre-provision net revenue

 

$

119,634

 

$

145,685

 

 

(17.9

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At March 31,

 

Percent

(In millions)

 

2024

 

2023

 

Increase

Loans

 

$

11,209

 

$

10,777

 

 

4.0

%

Deposits

 

 

26,914

 

 

25,708

 

 

4.7

 

AUA (off balance sheet)

 

 

8,125

 

 

7,750

 

 

4.8

 

Pre-tax, pre-provision net revenue decreased $26.1 million, to $119.6 million, in the quarter as compared to prior year. Net interest income decreased $28.8 million, to $205.8 million, primarily driven by higher rates paid on deposits, partially offset by loan and deposit growth. Non-interest income increased $6.3 million, to $34.0 million, primarily driven by a net gain on sale of MSRs, partially offset by lower deposit service fees and loan related fees. Non-interest expense increased $3.6 million, to $120.1 million, primarily driven by higher compensation and operational support expenses, partially offset by decreases in technology costs and professional services expenses.

Consolidated financial performance:

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

  • Net interest income was $567.7 million compared to $595.3 million.
  • Net interest margin was 3.35 percent compared to 3.66 percent. The yield on interest-earning assets increased by 51 basis points, and the cost of interest-bearing liabilities increased by 87 basis points.
  • Average interest-earning assets totaled $68.1 billion and increased by $2.0 billion, or 3.1 percent.
  • Average loans and leases totaled $50.9 billion and increased by $0.8 billion, or 1.7 percent.
  • Average deposits totaled $60.6 billion and increased by $5.8 billion, or 10.5 percent.

Quarterly provision for credit losses:

  • The provision for credit losses was $45.5 million in the quarter, contributing to a $5.7 million increase in the allowance for credit losses on loans and leases from prior quarter. The provision also contributed to a decrease in the reserve on unfunded loan commitments of $0.2 million. The provision for credit losses was $36.0 million in the prior quarter, and $46.7 million a year ago.
  • Net charge-offs were $37.5 million, compared to $34.0 million in the prior quarter, and $24.5 million a year ago. The ratio of net charge-offs to average loans and leases was 0.29 percent, compared to 0.27 percent in the prior quarter, and 0.20 percent a year ago.
  • The allowance for credit losses on loans and leases represented 1.26 percent of total loans and leases, compared to 1.25 percent at December 31, 2023, and 1.21 percent at March 31, 2023. The allowance represented 226 percent of nonperforming loans and leases at March 31, 2024, compared to 303 percent at December 31, 2023, and 332 percent at March 31, 2023.

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

  • Total non-interest income was $99.4 million compared to $70.8 million, an increase of $28.6 million. Total non-interest income includes a $9.8 million loss on the sale of investment securities and an $11.7 million net gain on the sale of MSRs, compared to a $16.7 million loss on the sale of investment securities a year ago. Excluding those items, total non-interest income increased $10.0 million. The increase is primarily attributable to the addition of Ametros and BOLI events.

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

  • Total non-interest expense was $335.9 million compared to $332.5 million, an increase of $3.4 million. Total non-interest expense includes $11.9 million related to an increase to the FDIC special assessment estimate and $3.1 million of Ametros acquisition expenses, compared to $29.4 million of Sterling merger charges a year ago. Excluding those charges, total non-interest expense increased $17.8 million. The increase is primarily attributable to the addition of Ametros and higher performance-based incentive accruals.

Quarterly income taxes compared to the first quarter of 2023:

  • Income tax expense was $69.3 million compared to $65.8 million, and the effective tax rate was 24.3 percent compared to 23.0 percent. The higher effective tax rate in the current period reflects the recognition of a $10.9 million discrete expense for an out-of-period adjustment, impacting the effective tax rate in the current period by 3.8 percentage points.

Investment securities:

  • Total investment securities, net were $16.3 billion, compared to $16.0 billion at December 31, 2023, and $14.9 billion at March 31, 2023. The carrying value of the available-for-sale portfolio included $758.5 million of net unrealized losses, compared to $708.7 million at December 31, 2023, and $766.4 million at March 31, 2023. The carrying value of the held-to-maturity portfolio does not reflect $897.2 million of net unrealized losses, compared to $810.2 million at December 31, 2023, and $742.8 million at March 31, 2023.

Loans and leases:

  • Total loans and leases were $51.1 billion, compared to $50.7 billion at December 31, 2023, and $50.9 billion at March 31, 2023. Compared to December 31, 2023, commercial loans and leases decreased by $303.1 million, commercial real estate loans increased by $711.8 million, residential mortgages decreased by $1.8 million, and consumer loans decreased by $34.3 million.
  • Compared to a year ago, commercial loans and leases decreased by $1.3 billion, commercial real estate loans increased by $1.4 billion, residential mortgages increased by $224.6 million, and consumer loans decreased by $101.9 million.
  • Loan originations for the portfolio were $2.5 billion, compared to $3.2 billion in the prior quarter, and $3.3 billion a year ago. In addition, $2.9 million of residential loans were originated for sale in the quarter, compared to $3.4 million in the prior quarter, and $2.5 million a year ago.

Asset quality:

  • Total nonperforming loans and leases were $283.6 million, or 0.56 percent of total loans and leases, compared to $209.5 million, or 0.41 percent of total loans and leases, at December 31, 2023, and $185.0 million, or 0.36 percent of total loans and leases, at March 31, 2023.
  • Past due loans and leases were $125.2 million, compared to $46.6 million at December 31, 2023, and $44.2 million at March 31, 2023. The increase from prior quarter is driven primarily by commercial real estate.

Deposits and borrowings:

  • Total deposits were $60.7 billion, compared to $60.8 billion at December 31, 2023, and $55.3 billion at March 31, 2023. Core deposits to total deposits1 were 88.6 percent at March 31, 2024, compared to 86.1 percent at December 31, 2023, and 91.8 percent at March 31, 2023. The loan to deposit ratio was 84.1 percent, compared to 83.5 percent at December 31, 2023, and 92.1 percent at March 31, 2023.
  • Total borrowings were $4.9 billion, compared to $3.9 billion at December 31, 2023, and $9.9 billion at March 31, 2023.

Capital:

  • The return on average common stockholders’ equity and the return on average tangible common stockholders’ equity1 were 10.01 percent and 16.30 percent, respectively, compared to 10.94 percent and 17.66 percent, respectively, in the first quarter of 2023.
  • The tangible equity1 and tangible common equity1 ratios were 7.54 percent and 7.15 percent, respectively, compared to 7.55 percent and 7.15 percent, respectively, at March 31, 2023. The common equity tier 1 ratio was 10.51 percent, compared to 10.42 percent at March 31, 2023.
  • Book value and tangible book value per common share1 were $49.07 and $30.22, respectively, compared to $45.85 and $29.47, respectively, at March 31, 2023.

1 See "Non-GAAP to GAAP Reconciliations" section beginning on page 18.

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 benefits and administration of medical insurance claim settlements solutions. Headquartered in Stamford, CT, Webster is a values-driven organization with $76 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 first quarter 2024 earnings announcement will be held today, Tuesday, April 23, 2024 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) on April 23, 2024. 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, including due to the bank failures in 2023; volatility in Webster's stock price due to investor sentiment, including in light of the bank failures of 2023 and related turmoil in 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 our 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, 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, the possibility of a recession, 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 and the ability of the U.S. Congress to increase the U.S. statutory debt limit as needed, as well as the impact of the 2024 U.S. presidential election; the impact of a potential U.S. federal government shutdown; 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 events, or fraudulent activity, including those that involve 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; changes in the mix of loan geographies, sectors, or types and the level of nonperforming assets and charge-offs; changes in estimates of future reserve requirements 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 the resolution of legal proceedings or regulatory or other governmental inquiries, and the results of regulatory examinations or reviews; Webster's ability to appropriately address and environmental, social, governmental, and sustainability concerns that may arise from our business activities; Webster's ability to assess and monitor the effect of artificial intelligence on our business and operations; unforeseen events, such as pandemics or natural disasters, 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 Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. 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 an FDIC special assessment estimate, Ametros acquisition expenses, loss on sale of investment securities, and net gain on sale of mortgage servicing rights, each of which have been tax-effected, and a discrete tax 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 on page 18 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)

March 31, 2024

 

December 31, 2023

 

September 30, 2023

 

June 30, 2023

 

March 31, 2023

  Income and performance ratios: Net income

$

216,323

 

$

185,393

 

$

226,475

 

$

234,968

 

$

221,004

 

Net income available to common stockholders

 

212,160

 

 

181,230

 

 

222,313

 

 

230,806

 

 

216,841

 

Earnings per diluted common share

 

1.23

 

 

1.05

 

 

1.28

 

 

1.32

 

 

1.24

 

Return on average assets (annualized)

 

1.15

%

 

1.01

%

 

1.23

%

 

1.23

%

 

1.22

%

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

 

16.30

 

 

14.49

 

 

17.51

 

 

18.12

 

 

17.66

 

Return on average common stockholders’ equity (annualized)

 

10.01

 

 

9.03

 

 

11.00

 

 

11.38

 

 

10.94

 

Non-interest income as a percentage of total revenue

 

14.89

 

 

10.05

 

 

13.34

 

 

13.28

 

 

10.62

 

  Asset quality: Allowance for credit losses on loans and leases

$

641,442

 

$

635,737

 

$

635,438

 

$

628,911

 

$

613,914

 

Nonperforming assets

 

289,254

 

 

218,600

 

 

218,402

 

 

222,215

 

 

186,551

 

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

 

1.26

%

 

1.25

%

 

1.27

%

 

1.22

%

 

1.21

%

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

 

0.29

 

 

0.27

 

 

0.23

 

 

0.16

 

 

0.20

 

Nonperforming loans and leases / total loans and leases

 

0.56

 

 

0.41

 

 

0.43

 

 

0.42

 

 

0.36

 

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

 

0.57

 

 

0.43

 

 

0.44

 

 

0.43

 

 

0.37

 

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

 

226.17

 

 

303.39

 

 

295.48

 

 

287.35

 

 

331.81

 

  Other ratios: Tangible equity (1)

 

7.54

%

 

8.12

%

 

7.62

%

 

7.62

%

 

7.55

%

Tangible common equity (1)

 

7.15

 

 

7.73

 

 

7.22

 

 

7.23

 

 

7.15

 

Tier 1 risk-based capital (2)

 

11.01

 

 

11.62

 

 

11.64

 

 

11.16

 

 

10.93

 

Total risk-based capital (2)

 

13.13

 

 

13.72

 

 

13.79

 

 

13.25

 

 

12.99

 

Common equity tier 1 risk-based capital (2)

 

10.51

 

 

11.11

 

 

11.12

 

 

10.65

 

 

10.42

 

Stockholders’ equity / total assets

 

11.49

 

 

11.60

 

 

11.21

 

 

11.18

 

 

11.08

 

Net interest margin

 

3.35

 

 

3.42

 

 

3.49

 

 

3.35

 

 

3.66

 

Efficiency ratio (1)

 

45.25

 

 

43.04

 

 

41.75

 

 

42.20

 

 

41.64

 

  Equity and share related: Common equity

$

8,463,519

 

$

8,406,017

 

$

7,915,222

 

$

7,995,747

 

$

8,010,315

 

Book value per common share

 

49.07

 

 

48.87

 

 

46.00

 

 

46.15

 

 

45.85

 

Tangible book value per common share (1)

 

30.22

 

 

32.39

 

 

29.48

 

 

29.69

 

 

29.47

 

Common stock closing price

 

50.77

 

 

50.76

 

 

40.31

 

 

37.75

 

 

39.42

 

Dividends declared per common share

 

0.40

 

 

0.40

 

 

0.40

 

 

0.40

 

 

0.40

 

Common shares issued and outstanding

 

172,464

 

 

172,022

 

 

172,056

 

 

173,261

 

 

174,712

 

Weighted-average common shares outstanding - Basic

 

170,445

 

 

170,415

 

 

171,210

 

 

172,739

 

 

172,766

 

Weighted-average common shares outstanding - Diluted

 

170,704

 

 

170,623

 

 

171,350

 

 

172,803

 

 

172,883

 

  (1) See "Non-GAAP to GAAP Reconcilations" section beginning on page 18. (2) Presented as preliminary for March 31, 2024, and actual for the remaining periods. WEBSTER FINANCIAL CORPORATIONConsolidated Balance Sheets (unaudited) (In thousands)

March 31, 2024

 

December 31, 2023

 

March 31, 2023

Assets: Cash and due from banks

$

322,041

 

$

429,323

 

$

201,683

 

Interest-bearing deposits

 

1,223,187

 

 

1,286,472

 

 

2,232,388

 

Investment securities: Available-for-sale

 

8,601,141

 

 

8,959,729

 

 

7,798,977

 

Held-to-maturity, net

 

7,679,891

 

 

7,074,588

 

 

7,063,223

 

Total investment securities, net

 

16,281,032

 

 

16,034,317

 

 

14,862,200

 

Loans held for sale

 

239,763

 

 

6,541

 

 

210,724

 

Loans and leases: Commercial

 

19,469,014

 

 

19,772,102

 

 

20,775,337

 

Commercial real estate

 

21,869,502

 

 

21,157,732

 

 

20,513,738

 

Residential mortgages

 

8,226,154

 

 

8,227,923

 

 

8,001,563

 

Consumer

 

1,533,972

 

 

1,568,295

 

 

1,635,885

 

Total loans and leases

 

51,098,642

 

 

50,726,052

 

 

50,926,523

 

Allowance for credit losses on loans and leases

 

(641,442

)

 

(635,737

)

 

(613,914

)

Loans and leases, net

 

50,457,200

 

 

50,090,315

 

 

50,312,609

 

Federal Home Loan Bank and Federal Reserve Bank stock

 

381,451

 

 

326,882

 

 

584,724

 

Premises and equipment, net

 

423,128

 

 

429,561

 

 

431,432

 

Goodwill and other intangible assets, net

 

3,250,909

 

 

2,834,600

 

 

2,861,310

 

Cash surrender value of life insurance policies

 

1,237,828

 

 

1,247,938

 

 

1,233,994

 

Deferred tax assets, net

 

341,292

 

 

369,212

 

 

315,525

 

Accrued interest receivable and other assets

 

2,003,862

 

 

1,890,088

 

 

1,597,806

 

Total assets

$

76,161,693

 

$

74,945,249

 

$

74,844,395

 

  Liabilities and Stockholders' Equity: Deposits: Demand

$

10,212,509

 

$

10,732,516

 

$

12,007,387

 

Health savings accounts

 

8,603,184

 

 

8,287,889

 

 

8,272,507

 

Interest-bearing checking

 

9,498,036

 

 

8,994,095

 

 

8,560,750

 

Money market

 

18,615,031

 

 

17,662,826

 

 

14,203,858

 

Savings

 

6,881,663

 

 

6,642,499

 

 

7,723,198

 

Certificates of deposit

 

5,928,773

 

 

5,574,048

 

 

3,855,406

 

Brokered certificates of deposit

 

1,008,547

 

 

2,890,411

 

 

674,373

 

Total deposits

 

60,747,743

 

 

60,784,284

 

 

55,297,479

 

Securities sold under agreements to repurchase and other borrowings

 

361,886

 

 

458,387

 

 

306,154

 

Federal Home Loan Bank advances

 

3,659,930

 

 

2,360,018

 

 

8,560,461

 

Long-term debt

 

914,520

 

 

1,048,820

 

 

1,071,413

 

Accrued expenses and other liabilities

 

1,730,116

 

 

1,603,744

 

 

1,314,594

 

Total liabilities

 

67,414,195

 

 

66,255,253

 

 

66,550,101

 

Preferred stock

 

283,979

 

 

283,979

 

 

283,979

 

Common stockholders' equity

 

8,463,519

 

 

8,406,017

 

 

8,010,315

 

Total stockholders’ equity

 

8,747,498

 

 

8,689,996

 

 

8,294,294

 

Total liabilities and stockholders' equity

$

76,161,693

 

$

74,945,249

 

$

74,844,395

 

WEBSTER FINANCIAL CORPORATIONConsolidated Statements of Income (unaudited)

Three Months Ended March 31,

(In thousands, except per share data)

2024

 

2023

Interest income: Interest and fees on loans and leases

$

792,045

 

$

716,356

 

Interest on investment securities

 

147,585

 

 

99,250

 

Loans held for sale

 

82

 

 

16

 

Other interest and dividends

 

12,138

 

 

15,306

 

Total interest income

 

951,850

 

 

830,928

 

Interest expense: Deposits

 

335,971

 

 

150,204

 

Borrowings

 

48,140

 

 

85,441

 

Total interest expense

 

384,111

 

 

235,645

 

Net interest income

 

567,739

 

 

595,283

 

Provision for credit losses

 

45,500

 

 

46,749

 

Net interest income after provision for loan and lease losses

 

522,239

 

 

548,534

 

Non-interest income: Deposit service fees

 

42,589

 

 

45,436

 

Loan and lease related fees

 

19,767

 

 

23,005

 

Wealth and investment services

 

7,924

 

 

6,587

 

Cash surrender value of life insurance policies

 

5,946

 

 

6,728

 

(Loss) on sale of investment securities

 

(9,826

)

 

(16,747

)

Other income

 

32,953

 

 

5,757

 

Total non-interest income

 

99,353

 

 

70,766

 

Non-interest expense: Compensation and benefits

 

188,540

 

 

173,200

 

Occupancy

 

19,439

 

 

20,171

 

Technology and equipment

 

45,836

 

 

44,366

 

Marketing

 

4,281

 

 

3,476

 

Professional and outside services

 

12,981

 

 

32,434

 

Intangible assets amortization

 

9,194

 

 

9,497

 

Deposit insurance

 

24,223

 

 

12,323

 

Other expenses

 

31,429

 

 

37,000

 

Total non-interest expense

 

335,923

 

 

332,467

 

Income before income taxes

 

285,669

 

 

286,833

 

Income tax expense

 

69,346

 

 

65,829

 

Net income

 

216,323

 

 

221,004

 

Preferred stock dividends

 

(4,163

)

 

(4,163

)

Net income available to common stockholders

$

212,160

 

$

216,841

 

  Weighted-average common shares outstanding - Diluted

 

170,704

 

 

172,883

 

  Earnings per common share: Basic

$

1.23

 

$

1.24

 

Diluted

 

1.23

 

 

1.24

 

WEBSTER FINANCIAL CORPORATIONFive Quarter Consolidated Statements of Income (unaudited)

Three Months Ended

(In thousands, except per share data)

March 31, 2024

 

December 31, 2023

 

September 30, 2023

 

June 30, 2023

 

March 31, 2023

Interest income: Interest and fees on loans and leases

$

792,045

 

$

789,423

 

$

793,626

 

$

771,973

 

$

716,356

 

Interest on investment securities

 

147,585

 

 

128,924

 

 

113,395

 

 

109,319

 

 

99,250

 

Loans held for sale

 

82

 

 

280

 

 

17

 

 

421

 

 

16

 

Other interest and dividends

 

12,138

 

 

14,520

 

 

23,751

 

 

51,683

 

 

15,306

 

Total interest income

 

951,850

 

 

933,147

 

 

930,789

 

 

933,396

 

 

830,928

 

Interest expense: Deposits

 

335,971

 

 

325,793

 

 

293,955

 

 

251,466

 

 

150,204

 

Borrowings

 

48,140

 

 

36,333

 

 

49,698

 

 

98,101

 

 

85,441

 

Total interest expense

 

384,111

 

 

362,126

 

 

343,653

 

 

349,567

 

 

235,645

 

Net interest income

 

567,739

 

 

571,021

 

 

587,136

 

 

583,829

 

 

595,283

 

Provision for credit losses

 

45,500

 

 

36,000

 

 

36,500

 

 

31,498

 

 

46,749

 

Net interest income after provision for loan and lease losses

 

522,239

 

 

535,021

 

 

550,636

 

 

552,331

 

 

548,534

 

Non-interest income: Deposit service fees

 

42,589

 

 

37,459

 

 

41,005

 

 

45,418

 

 

45,436

 

Loan and lease related fees

 

19,767

 

 

21,362

 

 

19,966

 

 

20,528

 

 

23,005

 

Wealth and investment services

 

7,924

 

 

7,767

 

 

7,254

 

 

7,391

 

 

6,587

 

Cash surrender value of life insurance policies

 

5,946

 

 

6,587

 

 

6,620

 

 

6,293

 

 

6,728

 

(Loss) on sale of investment securities

 

(9,826

)

 

(16,825

)

 

-

 

 

(48

)

 

(16,747

)

Other income

 

32,953

 

 

7,465

 

 

15,537

 

 

9,792

 

 

5,757

 

Total non-interest income

 

99,353

 

 

63,815

 

 

90,382

 

 

89,374

 

 

70,766

 

Non-interest expense: Compensation and benefits

 

188,540

 

 

184,914

 

 

180,333

 

 

173,305

 

 

173,200

 

Occupancy

 

19,439

 

 

18,478

 

 

18,617

 

 

20,254

 

 

20,171

 

Technology and equipment

 

45,836

 

 

46,486

 

 

55,261

 

 

51,815

 

 

44,366

 

Marketing

 

4,281

 

 

5,176

 

 

4,810

 

 

5,160

 

 

3,476

 

Professional and outside services

 

12,981

 

 

18,804

 

 

26,874

 

 

29,385

 

 

32,434

 

Intangible assets amortization

 

9,194

 

 

8,618

 

 

8,899

 

 

9,193

 

 

9,497

 

Deposit insurance

 

24,223

 

 

58,725

 

 

13,310

 

 

13,723

 

 

12,323

 

Other expenses

 

31,429

 

 

36,020

 

 

54,474

 

 

41,254

 

 

37,000

 

Total non-interest expense

 

335,923

 

 

377,221

 

 

362,578

 

 

344,089

 

 

332,467

 

Income before income taxes

 

285,669

 

 

221,615

 

 

278,440

 

 

297,616

 

 

286,833

 

Income tax expense

 

69,346

 

 

36,222

 

 

51,965

 

 

62,648

 

 

65,829

 

Net income

 

216,323

 

 

185,393

 

 

226,475

 

 

234,968

 

 

221,004

 

Preferred stock dividends

 

(4,163

)

 

(4,163

)

 

(4,162

)

 

(4,162

)

 

(4,163

)

Net income available to common stockholders

$

212,160

 

$

181,230

 

$

222,313

 

$

230,806

 

$

216,841

 

  Weighted-average common shares outstanding - Diluted

 

170,704

 

 

170,623

 

 

171,350

 

 

172,803

 

 

172,883

 

  Earnings per common share: Basic

$

1.23

 

$

1.05

 

$

1.29

 

$

1.32

 

$

1.24

 

Diluted

 

1.23

 

 

1.05

 

 

1.28

 

 

1.32

 

 

1.24

 

WEBSTER FINANCIAL CORPORATIONConsolidated Average Balances, Interest, Yields and Rates, and Net Interest Margin on a Fully Tax-equivalent Basis (unaudited)

Three Months Ended March 31,

2024

 

2023

(Dollars in thousands)

Average balance

 

Interest

 

Yield/rate

 

Average balance

 

Interest

 

Yield/rate

Assets: Interest-earning assets: Loans and leases

$

50,938,418

$

801,864

 

6.24

%

$

50,095,192

$

725,543

 

5.80

%

Investment securities (1)

 

16,243,349

 

153,645

 

3.64

 

 

14,633,245

 

105,974

 

2.79

 

Federal Home Loan and Federal Reserve Bank stock

 

343,992

 

4,352

 

5.09

 

 

459,375

 

4,910

 

4.34

 

Interest-bearing deposits

 

572,401

 

7,786

 

5.38

 

 

898,884

 

10,396

 

4.63

 

Loans held for sale

 

13,418

 

82

 

2.45

 

 

4,630

 

16

 

1.39

 

Total interest-earning assets

 

68,111,578

$

967,729

 

5.59

%

 

66,091,326

$

846,839

 

5.08

%

Non-interest-earning assets

 

7,221,187

 

6,225,199

Total assets

$

75,332,765

$

72,316,525

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

$

10,582,416

$

-

 

-

%

$

12,629,928

$

-

 

-

%

Health savings accounts

 

8,605,640

 

3,191

 

0.15

 

 

8,292,450

 

3,027

 

0.15

 

Interest-bearing checking, money market and savings

 

34,055,685

 

249,650

 

2.95

 

 

29,853,370

 

123,048

 

1.67

 

Certificates of deposit and brokered deposits

 

7,321,625

 

83,130

 

4.57

 

 

4,024,472

 

24,129

 

2.43

 

Total deposits

 

60,565,366

 

335,971

 

2.23

 

 

54,800,220

 

150,204

 

1.11

 

  Securities sold under agreements to repurchase and other borrowings

 

270,818

 

2,108

 

3.08

 

 

915,023

 

7,827

 

3.42

 

Federal Home Loan Bank advances

 

2,689,632

 

37,367

 

5.50

 

 

5,673,826

 

68,126

 

4.80

 

Long-term debt (1)

 

980,926

 

8,665

 

3.64

 

 

1,072,252

 

9,488

 

3.65

 

Total borrowings

 

3,941,376

 

48,140

 

4.88

 

 

7,661,101

 

85,441

 

4.48

 

Total interest-bearing liabilities

 

64,506,742

$

384,111

 

2.39

%

 

62,461,321

$

235,645

 

1.52

%

Non-interest-bearing liabilities

 

2,066,031

 

1,639,528

Total liabilities

 

66,572,773

 

64,100,849

  Preferred stock

 

283,979

 

283,979

Common stockholders' equity

 

8,476,013

 

7,931,697

Total stockholders' equity

 

8,759,992

 

8,215,676

Total liabilities and stockholders' equity

$

75,332,765

$

72,316,525

Tax-equivalent net interest income

 

583,618

 

 

611,194

 

Less: Tax-equivalent adjustments

 

(15,879

)

 

(15,911

)

Net interest income

$

567,739

 

$

595,283

 

Net interest margin

3.35

%

3.66

%

  (1) For the purposes of average yield/rate and margin computations, unsettled trades on investment securities, unrealized gains (losses) on available-for-sale investment securities, and basis adjustments on long-term debt from de-designated fair value hedges are excluded. WEBSTER FINANCIAL CORPORATIONFive Quarter Loans and Leases (unaudited) (Dollars in thousands)

March 31, 2024

 

December 31, 2023

 

September 30, 2023

 

June 30, 2023

 

March 31, 2023

Loans and leases (actual): Commercial non-mortgage

$

17,976,128

 

$

18,214,261

 

$

18,058,524

 

$

19,499,160

 

$

19,014,810

 

Asset-based lending

 

1,492,886

 

 

1,557,841

 

 

1,632,962

 

 

1,718,251

 

 

1,760,527

 

Commercial real estate

 

21,869,502

 

 

21,157,732

 

 

20,583,254

 

 

20,661,071

 

 

20,513,738

 

Residential mortgages

 

8,226,154

 

 

8,227,923

 

 

8,228,451

 

 

8,140,182

 

 

8,001,563

 

Consumer

 

1,533,972

 

 

1,568,295

 

 

1,584,955

 

 

1,607,384

 

 

1,635,885

 

Loans and leases

 

51,098,642

 

 

50,726,052

 

 

50,088,146

 

 

51,626,048

 

 

50,926,523

 

Allowance for credit losses on loans and leases

 

(641,442

)

 

(635,737

)

 

(635,438

)

 

(628,911

)

 

(613,914

)

Loans and leases, net

$

50,457,200

 

$

50,090,315

 

$

49,452,708

 

$

50,997,137

 

$

50,312,609

 

  Loans and leases (average): Commercial non-mortgage

$

18,235,402

 

$

18,181,417

 

$

18,839,776

 

$

19,220,435

 

$

18,670,917

 

Asset-based lending

 

1,523,616

 

 

1,588,350

 

 

1,663,481

 

 

1,756,051

 

 

1,790,992

 

Commercial real estate

 

21,403,765

 

 

20,764,834

 

 

20,614,334

 

 

20,518,355

 

 

19,970,326

 

Residential mortgages

 

8,225,151

 

 

8,240,390

 

 

8,200,938

 

 

8,067,349

 

 

7,995,327

 

Consumer

 

1,550,484

 

 

1,577,349

 

 

1,593,659

 

 

1,622,525

 

 

1,667,630

 

Loans and leases

$

50,938,418

 

$

50,352,340

 

$

50,912,188

 

$

51,184,715

 

$

50,095,192

 

WEBSTER FINANCIAL CORPORATIONFive Quarter Nonperforming Assets and Past Due Loans and Leases (unaudited) (Dollars in thousands)

March 31, 2024

 

December 31, 2023

 

September 30, 2023

 

June 30, 2023

 

March 31, 2023

Nonperforming loans and leases: Commercial non-mortgage

$

203,626

$

134,617

$

121,067

$

109,279

$

86,537

Asset-based lending

 

34,915

 

35,090

 

10,350

 

9,450

 

9,450

Commercial real estate

 

14,323

 

11,314

 

31,004

 

47,972

 

35,832

Residential mortgages

 

8,407

 

5,591

 

27,312

 

26,751

 

25,096

Consumer

 

22,341

 

22,932

 

25,320

 

25,417

 

28,105

Total nonperforming loans and leases

$

283,612

$

209,544

$

215,053

$

218,869

$

185,020

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

$

5,540

$

8,954

$

2,687

$

2,152

$

153

Residential mortgages

 

-

 

-

 

662

 

662

 

662

Consumer

 

102

 

102

 

-

 

532

 

716

Total other real estate owned and repossessed assets

$

5,642

$

9,056

$

3,349

$

3,346

$

1,531

Total nonperforming assets

$

289,254

$

218,600

$

218,402

$

222,215

$

186,551

Past due 30-89 days: Commercial non-mortgage

$

15,365

$

7,071

$

38,875

$

32,074

$

9,645

Commercial real estate

 

72,999

 

9,002

 

3,491

 

1,970

 

17,115

Residential mortgages

 

17,580

 

21,047

 

16,208

 

10,583

 

10,710

Consumer

 

6,824

 

9,417

 

12,016

 

6,718

 

6,110

Total past due 30-89 days

$

112,768

$

46,537

$

70,590

$

51,345

$

43,580

Past due 90 days or more and accruing

 

12,460

 

52

 

138

 

29

 

602

Total past due loans and leases

$

125,228

$

46,589

$

70,728

$

51,374

$

44,182

WEBSTER FINANCIAL CORPORATIONFive Quarter Changes in the Allowance for Credit Losses on Loans and Leases (unaudited)

For the Three Months Ended

(Dollars in thousands)

March 31, 2024

 

December 31, 2023

 

September 30, 2023

 

June 30, 2023

 

March 31, 2023

ACL on loans and leases, beginning balance

$

635,737

$

635,438

$

628,911

$

613,914

$

594,741

Adoption of ASU No. 2022-02

 

-

 

-

 

-

 

-

 

5,873

Provision

 

43,194

 

34,300

 

35,839

 

35,249

 

37,821

Charge-offs: Commercial portfolio

 

38,461

 

28,794

 

27,360

 

21,945

 

26,410

Consumer portfolio

 

1,330

 

6,878

 

3,642

 

1,085

 

1,098

Total charge-offs

 

39,791

 

35,672

 

31,002

 

23,030

 

27,508

Recoveries: Commercial portfolio

 

553

 

396

 

292

 

1,024

 

1,574

Consumer portfolio

 

1,749

 

1,275

 

1,398

 

1,754

 

1,413

Total recoveries

 

2,302

 

1,671

 

1,690

 

2,778

 

2,987

Total net charge-offs

 

37,489

 

34,001

 

29,312

 

20,252

 

24,521

ACL on loans and leases, ending balance

$

641,442

$

635,737

$

635,438

$

628,911

$

613,914

ACL on unfunded loan commitments, ending balance

 

24,495

 

24,734

 

23,040

 

22,366

 

26,051

Total ACL, ending balance

$

665,937

$

660,471

$

658,478

$

651,277

$

639,965

WEBSTER FINANCIAL CORPORATIONNon-GAAP to GAAP Reconciliations  

At or for the Three Months Ended

(In thousands, except per share data)

March 31, 2024

 

December 31, 2023

 

September 30, 2023

 

June 30, 2023

 

March 31, 2023

Efficiency ratio: Non-interest expense

$

335,923

 

$

377,221

 

$

362,578

 

$

344,089

 

$

332,467

 

Less: Foreclosed property activity

 

(330

)

 

(96

)

 

(492

)

 

(432

)

 

(262

)

Intangible assets amortization

 

9,194

 

 

8,618

 

 

8,899

 

 

9,193

 

 

9,497

 

Operating lease depreciation

 

663

 

 

900

 

 

1,146

 

 

1,639

 

 

1,884

 

FDIC special assessment estimate

 

11,862

 

 

47,164

 

 

-

 

 

-

 

 

-

 

Merger related expenses (1)

 

3,139

 

 

30,679

 

 

61,625

 

 

40,840

 

 

29,373

 

Non-interest expense

$

311,395

 

$

289,956

 

$

291,400

 

$

292,849

 

$

291,975

 

Net interest income

$

567,739

 

$

571,021

 

$

587,136

 

$

583,829

 

$

595,283

 

Add: Tax-equivalent adjustment

 

15,879

 

 

17,830

 

 

17,906

 

 

17,292

 

 

15,911

 

Non-interest income

 

99,353

 

 

63,815

 

 

90,382

 

 

89,374

 

 

70,766

 

Other income (2)

 

7,626

 

 

5,099

 

 

3,614

 

 

5,035

 

 

4,311

 

Less: Operating lease depreciation

 

663

 

 

900

 

 

1,146

 

 

1,639

 

 

1,884

 

(Loss) on sale of investment securities

 

(9,826

)

 

(16,825

)

 

-

 

 

(48

)

 

(16,747

)

Net gain on sale of mortgage servicing rights

 

11,655

 

 

-

 

 

-

 

 

-

 

 

-

 

Income

$

688,105

 

$

673,690

 

$

697,892

 

$

693,939

 

$

701,134

 

Efficiency ratio

 

45.25

%

 

43.04

%

 

41.75

%

 

42.20

%

 

41.64

%

  ROATCE: Net income

$

216,323

 

$

185,393

 

$

226,475

 

$

234,968

 

$

221,004

 

Less: Preferred stock dividends

 

4,163

 

 

4,163

 

 

4,162

 

 

4,162

 

 

4,163

 

Add: Intangible assets amortization, tax-effected

 

7,263

 

 

6,808

 

 

7,030

 

 

7,262

 

 

7,503

 

Adjusted income

$

219,423

 

$

188,038

 

$

229,343

 

$

238,068

 

$

224,344

 

Adjusted income, annualized basis

$

877,692

 

$

752,152

 

$

917,372

 

$

952,272

 

$

897,376

 

Average stockholders' equity

$

8,759,992

 

$

8,312,798

 

$

8,370,469

 

$

8,395,298

 

$

8,215,676

 

Less: Average preferred stock

 

283,979

 

 

283,979

 

 

283,979

 

 

283,979

 

 

283,979

 

Average goodwill and other intangible assets, net

 

3,090,751

 

 

2,838,770

 

 

2,847,560

 

 

2,856,581

 

 

2,849,673

 

Average tangible common stockholders' equity

$

5,385,262

 

$

5,190,049

 

$

5,238,930

 

$

5,254,738

 

$

5,082,024

 

Return on average tangible common stockholders' equity

 

16.30

%

 

14.49

%

 

17.51

%

 

18.12

%

 

17.66

%

  (1) Merger related expenses include Ametros acquisition expenses for the three months ended March 31, 2024. 2023 periods primarily include charges related to the merger with Sterling. (2) Other income includes the taxable equivalent of net income generated from low income housing tax-credit investments.

At or for the Three Months Ended

(In thousands, except per share data)

March 31, 2024

 

December 31, 2023

 

September 30, 2023

 

June 30, 2023

 

March 31, 2023

Tangible equity: Stockholders' equity

$

8,747,498

 

$

8,689,996

 

$

8,199,201

 

$

8,279,726

 

$

8,294,294

 

Less: Goodwill and other intangible assets, net

 

3,250,909

 

 

2,834,600

 

 

2,843,217

 

 

2,852,117

 

 

2,861,310

 

Tangible stockholders' equity

$

5,496,589

 

$

5,855,396

 

$

5,355,984

 

$

5,427,609

 

$

5,432,984

 

Total assets

$

76,161,693

 

$

74,945,249

 

$

73,130,851

 

$

74,038,243

 

$

74,844,395

 

Less: Goodwill and other intangible assets, net

 

3,250,909

 

 

2,834,600

 

 

2,843,217

 

 

2,852,117

 

 

2,861,310

 

Tangible assets

$

72,910,784

 

$

72,110,649

 

$

70,287,634

 

$

71,186,126

 

$

71,983,085

 

Tangible equity

 

7.54

%

 

8.12

%

 

7.62

%

 

7.62

%

 

7.55

%

  Tangible common equity: Tangible stockholders' equity

$

5,496,589

 

$

5,855,396

 

$

5,355,984

 

$

5,427,609

 

$

5,432,984

 

Less: Preferred stock

 

283,979

 

 

283,979

 

 

283,979

 

 

283,979

 

 

283,979

 

Tangible common stockholders' equity

$

5,212,610

 

$

5,571,417

 

$

5,072,005

 

$

5,143,630

 

$

5,149,005

 

Tangible assets

$

72,910,784

 

$

72,110,649

 

$

70,287,634

 

$

71,186,126

 

$

71,983,085

 

Tangible common equity

 

7.15

%

 

7.73

%

 

7.22

%

 

7.23

%

 

7.15

%

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

$

5,212,610

 

$

5,571,417

 

$

5,072,005

 

$

5,143,630

 

$

5,149,005

 

Common shares outstanding

 

172,464

 

 

172,022

 

 

172,056

 

 

173,261

 

 

174,712

 

Tangible book value per common share

$

30.22

 

$

32.39

 

$

29.48

 

$

29.69

 

$

29.47

 

  Core deposits: Total deposits

$

60,747,743

 

$

60,784,284

 

$

60,331,767

 

$

58,747,532

 

$

55,297,479

 

Less: Certificates of deposit

 

5,928,773

 

 

5,574,048

 

 

5,150,139

 

 

4,743,204

 

 

3,855,406

 

Brokered certificates of deposit

 

1,008,547

 

 

2,890,411

 

 

2,337,380

 

 

2,542,854

 

 

674,373

 

Core deposits

$

53,810,423

 

$

52,319,825

 

$

52,844,248

 

$

51,461,474

 

$

50,767,700

 

 

Three months ended March 31, 2024

Adjusted ROATCE: Net income

$

216,323

 

Less: Preferred stock dividends

 

4,163

 

Add: Intangible assets amortization, tax-effected

 

7,263

 

FDIC special assessment estimate, tax-effected

 

8,917

 

Ametros acquisition expenses, tax-effected

 

2,360

 

Loss on sale of investment securities, tax-effected

 

7,386

 

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

 

(8,761

)

Discrete tax adjustment

 

10,929

 

Adjusted income

$

240,254

 

Adjusted income, annualized basis

$

961,016

 

Average stockholders' equity

$

8,759,992

 

Less: Average preferred stock

 

283,979

 

Average goodwill and other intangible assets, net

 

3,090,751

 

Average tangible common stockholders' equity

$

5,385,262

 

Adjusted return on average tangible common stockholders' equity

 

17.85

%

  Adjusted ROAA: Net income

$

216,323

 

Add: FDIC special assessment estimate, tax-effected

 

8,917

 

Ametros acquisition expenses, tax-effected

 

2,360

 

Loss on sale of investment securities, tax-effected

 

7,386

 

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

 

(8,761

)

Discrete tax adjustment

 

10,929

 

Adjusted income

$

237,154

 

Adjusted income, annualized basis

$

948,616

 

Average assets

$

75,332,765

 

Adjusted return on average assets

 

1.26

%

GAAP to adjusted reconciliation:

Three months ended March 31, 2024

(In millions, except per share data)

Pre-Tax Income

 

Net Income Available to Common Stockholders

 

Diluted EPS

Reported (GAAP)

$

285.7

 

$

212.2

 

$

1.23

 

FDIC special assessment estimate

 

11.9

 

 

8.9

 

 

0.05

 

Ametros acquisition expenses

 

3.1

 

 

2.4

 

 

0.01

 

Loss on sale of investment securities

 

9.8

 

 

7.4

 

 

0.04

 

Net (gain) on sale of mortgage servicing rights

 

(11.7

)

 

(8.8

)

 

(0.05

)

Discrete tax adjustment

 

 

 

10.9

 

 

0.07

 

Adjusted (non-GAAP)

$

298.9

 

$

233.0

 

$

1.35

 

Note: Totals may not sum due to rounding.

 

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

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

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