Webster Financial Corporation operates as the holding company for Webster Bank, N.A., a significant commercial bank focused on financial solutions across diverse segments including Commercial Banking, Consumer Banking, and Healthcare Financial Services. The bank holds approximately $79 billion in assets, serving customers primarily in the northeastern U.S. and extending services through digital platforms.

In the fourth quarter of 2024, Webster experienced a stable performance, with net income available to common stockholders amounting to $173.6 million, or $1.01 per diluted share. This represented a decline from $181.2 million, or $1.05 per diluted share, recorded in the same quarter of 2023. Adjusted net income in the current quarter, excluding certain losses, stood at $240 million, translating to an adjusted EPS of $1.43, down from $1.46 in the prior year.

Total revenue for the fourth quarter was recorded at $661.0 million, reflecting growth compared to the previous quarter driven by an increase in net interest income. Net interest income increased by $37.5 million, reaching $608.5 million, while the net interest margin slightly expanded by 3 basis points to 3.39%.

In terms of loan performance, final loans and leases reached $52.5 billion, up by $558 million or 1.1% from the prior quarter. This growth was primarily fueled by an increase in Commercial and Industrial loans, as well as residential mortgages. Sequentially, deposits also increased by $239 million, ending the period at $64.8 billion.

The bank’s provision for credit losses for the quarter amounted to $63.5 million, compared to $54 million in the previous quarter and $36 million a year ago. This led to an increase in net charge-offs, totaling $60.9 million for the quarter against $35.4 million in the previous quarter. The allowance for credit losses on loans and leases stood at 1.31%, reflecting a slight decrease from 1.32% in the prior quarter.

The adjusted return on average tangible common equity for the quarter was reported at 17.73%, while the adjusted return on average assets was 1.27%. The efficiency ratio improved slightly to 44.80%, showcasing the bank’s ongoing operational efficiency despite industry-wide challenges.

Capital ratios remained healthy, with a Common Equity Tier 1 ratio of 11.50%. Despite some unrealized losses in the securities portfolio, Webster’s capital position continued to support its operational and growth strategies for the upcoming quarters.

Overall, Webster’s earnings report demonstrated resilience in its operations, driven by strong loan growth and deposit stability amidst a challenging banking environment.