Home Economy Economic Activity Webster Bank parent sees profits rise 35% in 2023 but decline 24%...

Webster Bank parent sees profits rise 35% in 2023 but decline 24% in Q4

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PBN Staff

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01/24/2024

WEBSTER FINANCIAL Corp., parent company of Webster Bank, reported a $867.8 million profit in 2023, marking a 34.7% increase over the year prior.

STAMFORD, Conn. – Webster Financial Corp., the parent company of Webster Bank, says it recorded a $867.8 million profit in 2023, marking a 34.7% increase over the $644.3 million it made in 2022. For the fourth quarter, Webster – which has seven branches in Rhode Island – said it had a profit of $185.4 million,

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STAMFORD, Conn. – Webster Financial Corp., the parent company of Webster Bank, says it recorded a $867.8 million profit in 2023, marking a 34.7% increase over the $644.3 million it made in 2022. For the fourth quarter, Webster – which has seven branches in Rhode Island – said it had a profit of $185.4 million, down 24.2% from the $244.8 million in net income the company reported in the same quarter a year ago. Webster cited a special assessment charged by the Federal Deposit Insurance Corp. to all of its members in the fourth quarter as part of the reason for the decline in profit in the fourth quarter. The assessment, intended to replenish the FDIC's fund following the failure of two large banks in 2023, amounted to $41.7 million for Webster. The bank also said there were pre-tax charges related to the merger with Sterling Bancorp in 2022 and the repositioning of securities. The bank's revenue for 2023 – interest and noninterest income – stood at $3.94 billion, up 44% from $2.73 billion reported in 2022. At the same time, interest and noninterest expenses increased from $1.65 billion in 2022 to $2.71 billion in 2023, a 64.4% jump. Diluted earnings per share for the year rose $1.19 to $4.91 per share. For the fourth quarter, earnings per diluted share declined from $1.38 to $1.05 year over year. Webster noted that without the FDIC assessment and other one-time charges earnings per diluted share for the quarter would have been $1.46. "In addition to our strong financial performance for the quarter and full-year 2023, we realized several meaningful strategic accomplishments," said John R. Ciulla, Webster CEO and president. "Our strong financial position and proactive actions position us well for continued success in 2024." Total deposits climbed to $60.78 billion as of Dec. 31, up $6.73 billion, or 12.5%, from a year ago. Meanwhile, total assets stood at $74.95 billion at the end of 2023, an increase of $3.67 billion, or 5.1% from a year earlier.