Home Economy Economic Activity Webster sees Q3 profit narrow to $193M

Webster sees Q3 profit narrow to $193M

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PBN Staff

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10/17/2024

WebsterBank — WEBSTER FINANCIAL Corp. on Thursday posted a third-quarter profit of $193 million, a 14.8% decline from the same period a year ago. PBN FILE PHOTO

STAMFORD, Conn. – Webster Financial Corp. on Thursday posted a third-quarter profit of $193 million, a 14.8% decline from the same period a year ago. The parent of Webster Bank N.A., which has seven locations in Rhode Island, said it had earnings of $1.10 per diluted share, a decrease from $1.28 per diluted share the year

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STAMFORD, Conn. – Webster Financial Corp. on Thursday posted a third-quarter profit of $193 million, a 14.8% decline from the same period a year ago. The parent of Webster Bank N.A., which has seven locations in Rhode Island, said it had earnings of $1.10 per diluted share, a decrease from $1.28 per diluted share the year prior. Earnings, adjusted for nonrecurring costs, were $1.34 per share and fell short of Wall Street’s expectations. The average estimate of eight analysts surveyed by Zacks Investment Research was for earnings of $1.35 per share. The holding company for Webster Bank posted revenue of $647.6 million, a decrease from $677.5 million a year prior. This also fell short of Wall Street forecasts. Five analysts surveyed by Zacks Investment Research expected $673.5 million. “Webster delivered solid deposit and loan growth, even in a challenging environment,” said John R. Ciulla, Webster chairman and CEO. “Our growth was the result of broad contributions across business segments and teams.” Total deposits climbed to $64.5 billion as of Sept. 30 compared to $60.3 billion a year ago. Meanwhile, total assets stood at $79.4 billion at the end of the quarter, up from $73.1 billion a year earlier. Net interest income increased 0.4% from $587 million in the third quarter of 2023 to $589.9 million. The net interest margin, the difference between interest income generated and the amount paid out to lenders, was up 4 basis points to 3.36% year over year. Noninterest income fell to $57.7 million from $90.3 million in the third quarter of 2023. This included a $19.6 million net loss on the sale of investment securities and a $16 million loss on the exit of noncore operations, including the write-off of a related customer intangible. Noninterest expense was $349 million, compared to $362.6 million a year prior. This included a net $20.6 million related to strategic restructuring costs and other adjustments partially offset by a benefit on the FDIC special assessment compared to a net $61.6 million related to Sterling merger charges a year ago.