Webster Reports Third Quarter 2024 EPS of $1.10; Adjusted EPS of $1.34

Webster Financial Corporation (“Webster”) (NYSE: WBS), the holding company for Webster Bank, N.A., today announced net income available to common stockholders of $188.8 million, or $1.10 per diluted share, for the quarter ended September 30, 2024, compared to $222.3 million, or $1.28 per diluted share, for the quarter ended September 30, 2023.

Third quarter 2024 results include $56.2 million pre-tax ($41.0 million after tax), or $0.241 per diluted share, of securities repositioning net losses, strategic restructuring costs, and other adjustments. Excluding these items, adjusted earnings per diluted share would have been $1.341 for the quarter ended September 30, 2024.

“Webster delivered solid deposit and loan growth, even in a challenging environment,” said John R. Ciulla, chairman and chief executive officer. “Our growth was the result of broad contributions across business segments and teams.”

Highlights for the third quarter of 2024:

• Revenue of $647.6 million.
• Period end loans and leases balance of $51.9 billion, up $0.4 billion or 0.7 percent from prior quarter; excluding a $0.3 billion strategic repositioning of the balance sheet through a commercial real estate ("CRE") securitization, loans grew 1.3 percent.
• Period end deposits balance of $64.5 billion, up $2.2 billion or 3.6 percent from prior quarter; core deposit growth of $2.6 billion from prior quarter; $1.1 billion of growth from seasonal public funds inflows.
• Provision for credit losses of $54.0 million.
• Return on average assets of 1.01 percent; adjusted 1.22 percent1.
• Return on average tangible common equity of 14.29 percent1; adjusted 17.28 percent1.
• Net interest margin of 3.36 percent, up 4 basis points from prior quarter.
• Common equity tier 1 ratio of 11.23%.
• Efficiency ratio of 45.49 percent1.
• Tangible common equity ratio of 7.48 percent1.

“In addition to our diverse balance sheet growth, we took actions this quarter to reduce our CRE concentration, enhance capital ratios, and further mitigate our interest rate sensitivity while maintaining industry leading efficiency,” said Neal Holland, executive vice president and chief financial officer.

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

Consolidated financial performance:

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

• Net interest income was $589.9 million compared to $587.1 million.
• Net interest margin was 3.36 percent compared to 3.49 percent. The yield on interest-earning assets increased by 20 basis points, and the cost of interest-bearing liabilities increased by 35 basis points.
• Average interest-earning assets totaled $69.8 billion and increased by $2.7 billion, or 4.0 percent.
• Average loans and leases totaled $51.8 billion and increased by $0.8 billion, or 1.6 percent.
• Average deposits totaled $62.6 billion and increased by $3.0 billion, or 5.0 percent.

Quarterly provision for credit losses:

• The provision for credit losses was $54.0 million in the quarter, contributing to a $18.4 million increase in the allowance for credit losses on loans and leases from the prior quarter. The provision for credit losses was $59.0 million in the prior quarter, and $36.5 million a year ago.
• Net charge-offs were $35.4 million, compared to $33.1 million in the prior quarter, and $29.3 million a year ago. The ratio of net charge-offs to average loans and leases was 0.27 percent, compared to 0.26 percent in the prior quarter, and 0.23 percent a year ago.
• The allowance for credit losses on loans and leases represented 1.32 percent of total loans and leases, compared to 1.30 percent at June 30, 2024, and 1.27 percent at September 30, 2023. The allowance represented 162 percent of nonperforming loans and leases, compared to 181 percent at June 30, 2024, and 295 percent at September 30, 2023.

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

• Total non-interest income was $57.7 million compared to $90.4 million, a decrease of $32.7 million. Total non-interest income includes a $19.6 million net loss on the sale of investment securities and a $16.0 million loss on the exit of non-core operations including the write-off of a related customer intangible. Excluding these items, total non-interest income increased $2.9 million. The increase is primarily attributable to the addition of Ametros and higher investment services income, which was partially offset by a reduction in the credit valuation adjustment on customer derivatives.

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

• Total non-interest expense was $349.0 million compared to $362.6 million, a decrease of $13.6 million. Total non-interest expense includes 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 of Sterling merger charges a year ago. Excluding those charges, total non-interest expense increased $27.4 million. The increase is primarily attributable to the addition of Ametros and related intangible amortization expense, along with investments in human capital and technology.

Quarterly income taxes compared to the third quarter of 2023:

• Income tax expense was $51.7 million compared to $52.0 million, and the effective tax rate was 21.1 percent compared to 18.7 percent. The lower effective tax rate in the period a year ago reflected the recognition of discrete tax benefits from merger related charges and tax return true-up adjustments, while the current period includes discrete tax expense from tax return true-ups and other items.

Investment securities:

• Total investment securities, net were $17.2 billion, compared to $16.4 billion at June 30, 2024, and $14.5 billion at September 30, 2023. The carrying value of the available-for-sale portfolio included $486.1 million of net unrealized losses, compared to $772.2 million at June 30, 2024, and $1.1 billion at September 30, 2023. The carrying value of the held-to-maturity portfolio does not reflect $677.0 million of net unrealized losses, compared to $964.5 million at June 30, 2024, and $1.2 billion at September 30, 2023.

Loans and leases:

• Total loans and leases were $51.9 billion, compared to $51.6 billion at June 30, 2024, and $50.1 billion at September 30, 2023. Compared to June 30, 2024, commercial loans and leases increased by $628.6 million, commercial real estate loans decreased by $586.4 million, residential mortgages increased by $292.3 million, and consumer loans increased by $39.1 million.
• Compared to a year ago, commercial loans and leases increased by $0.4 billion, commercial real estate loans increased by $1.1 billion, residential mortgages increased by $348.2 million, and consumer loans decreased by $26.9 million.
• Loan originations for the portfolio were $2.8 billion, compared to $3.0 billion in the prior quarter, and $1.5 billion a year ago. In addition, $0.8 million of residential loans were originated for sale in the quarter, compared to $0.8 million in the prior quarter, and $1.5 million a year ago.

Asset quality:

• Total nonperforming loans and leases were $425.6 million, or 0.82 percent of total loans and leases, compared to $368.8 million, or 0.72 percent of total loans and leases, at June 30, 2024, and $215.1 million, or 0.43 percent of total loans and leases, at September 30, 2023.
• Past due loans and leases were $108.9 million, compared to $166.3 million at June 30, 2024, and $70.7 million at September 30, 2023. The decrease from prior quarter is driven primarily by commercial non-mortgage, partially offset by commercial real estate and residential mortgages.

Deposits and borrowings:

• Total deposits were $64.5 billion, compared to $62.3 billion at June 30, 2024, and $60.3 billion at September 30, 2023. Core deposits to total deposits1 were 88.5 percent, compared to 87.5 percent at June 30, 2024, and 87.6 percent at September 30, 2023. The loan to deposit ratio was 80.5 percent, compared to 82.8 percent at June 30, 2024, and 83.0 percent at September 30, 2023.
• Total borrowings were $4.1 billion, compared to $4.0 billion at June 30, 2024, and $3.0 billion at September 30, 2023.

Capital:

• The return on average common stockholders’ equity and the return on average tangible common stockholders’ equity1 were 8.67 percent and 14.29 percent, respectively, compared to 11.00 percent and 17.51 percent, respectively, in the third quarter of 2023.
• The tangible equity1 and tangible common equity1 ratios were 7.85 percent and 7.48 percent, respectively, compared to 7.62 percent and 7.22 percent, respectively, at September 30, 2023. The common equity tier 1 ratio was 11.23 percent, compared to 11.12 percent at September 30, 2023.
• Book value and tangible book value per common share1 were $52.00 and $33.26, respectively, compared to $46.00 and $29.48, respectively, at September 30, 2023.

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

Reportable segments:

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 September 30, 2024, Commercial Banking had $40.4 billion in loans and leases and $17.1 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 September 30,

 

Favorable/

(In thousands)

 

2024

2023

 

(Unfavorable)

Net interest income

 

$338,424

$365,003

 

 

(7.3

)%

 

Non-interest income

 

33,288

28,804

 

 

15.6

 

 

Operating revenue

 

371,712

393,807

 

 

(5.6

)

 

Non-interest expense

 

100,892

98,736

 

 

(2.2

)

 

Pre-tax, pre-provision net revenue

 

$270,820

$295,071

 

 

(8.2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent

 

 

At September 30,

 

Increase/

(In millions)

 

2024

2023

 

(Decrease)

Loans and leases

 

$40,372

$38,849

 

 

3.9

%

 

Deposits

 

17,124

17,166

 

 

(0.2

)

 

AUA / AUM (off balance sheet)

 

2,968

2,727

 

 

8.9

 

 

Pre-tax, pre-provision net revenue decreased $24.3 million, to $270.8 million, in the quarter as compared to prior year. Net interest income decreased $26.6 million, to $338.4 million, primarily driven by higher loan funding costs coupled with higher deposit rates. Non-interest income increased $4.5 million, to $33.3 million, primarily driven by loan sale/securitization activity in the quarter. Non-interest expense increased $2.2 million, to $100.9 million, primarily driven by continued investments in human capital and technology.

Healthcare Financial Services

Webster’s Healthcare Financial Services segment is comprised of HSA Bank and the Ametros business, 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 September 30, 2024, Healthcare Financial Services had $15.1 billion in total footings comprising $9.9 billion in deposits and $5.2 billion in assets under administration through linked investment accounts.

Healthcare Financial Services Operating Results:

 

 

 

 

 

Percent

 

Three months ended September 30,

 

Favorable/

(In thousands)

 

2024

2023

 

(Unfavorable)

Net interest income

 

$93,940

$77,669

 

 

20.9

%

 

Non-interest income

 

26,541

20,799

 

 

27.6

 

 

Operating revenue

 

120,481

98,468

 

 

22.4

 

 

Non-interest expense

 

54,023

39,870

 

 

(35.5

)

 

Pre-tax, net revenue

 

$66,458

$58,598

 

 

13.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At September 30,

 

Percent

(Dollars in millions)

 

2024

2023

 

Increase

Number of accounts (thousands)

 

3,341

3,186

 

 

4.9

%

 

 

 

 

 

 

 

 

 

Deposits

 

$9,940

$8,230

 

 

20.8

 

 

Linked investment accounts (off balance sheet)

 

5,205

4,095

 

 

27.1

 

 

Total footings

 

$15,146

$12,325

 

 

22.9

 

 

Pre-tax net revenue increased $7.9 million, to $66.5 million, in the quarter as compared to prior year. Net interest income increased $16.3 million, to $93.9 million, primarily due to $11.8 million from Ametros and an increase in net deposit spread coupled with deposit growth at HSA Bank. Non-interest income increased $5.7 million, to $26.5 million, primarily due to $6.8 million from Ametros, offset by a decrease of $1.1 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 $14.1 million, to $54.0 million, primarily due to $11.8 million from Ametros. HSA Bank expenses were $2.3 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 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 September 30, 2024, Consumer Banking had $11.6 billion in loans and $27.0 billion in deposits, as well as $7.9 billion in assets under administration.

Consumer Banking Operating Results:

 

 

 

 

 

Percent

 

Three months ended September 30,

 

Favorable/

(In thousands)

 

2024

2023

 

(Unfavorable)

Net interest income

 

$202,122

$221,698

 

 

(8.8

)%

 

Non-interest income

 

28,299

28,687

 

 

(1.4

)

 

Operating revenue

 

230,421

250,385

 

 

(8.0

)

 

Non-interest expense

 

116,253

117,273

 

 

0.9

 

 

Pre-tax, pre-provision net revenue

 

$114,168

$133,112

 

 

(14.2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At September 30,

 

Percent

(In millions)

 

2024

2023

 

Increase

Loans

 

$11,571

$11,219

 

 

3.1

%

 

Deposits

 

27,020

25,869

 

 

4.4

 

 

AUA (off balance sheet)

 

7,948

7,615

 

 

4.4

 

 

Pre-tax, pre-provision net revenue decreased $19.0 million, to $114.2 million, in the quarter as compared to prior year. Net interest income decreased $19.6 million, to $202.1 million, primarily driven by higher rates paid on deposits, partially offset by loan and deposit growth. Non-interest income decreased $0.4 million, to $28.3 million, primarily driven by lower deposit service fees and loan related fees, partially offset by increased ATM fees and investment services income. Non-interest expense decreased $1.0 million, to $116.3 million, primarily driven by lower compensation and processing expenses, partially offset by higher technology costs.

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 third quarter 2024 earnings announcement will be held today, Thursday, October 17, 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 October 17, 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; 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 impact of the 2024 U.S. presidential election; 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; 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 recent U.S. Supreme Court 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 any environmental, social, governmental, and sustainability concerns of different stakeholders and activists that may arise from its business activities; Webster’s ability to assess and monitor the effect of artificial intelligence on its business and operations; unforeseen events, such as pandemics, natural disasters, and severe weather events, 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 a net loss on sale of investment securities, exit of non-core operations, strategic restructuring costs, and a FDIC special assessment benefit, which have been tax-effected.

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)

September 30,2024

June 30,2024



March 31,2024



December 31,2023



September 30,2023




















 

Income and performance ratios:

Net income

$

192,985

$

181,633

$

216,323

$

185,393

$

226,475

Net income available to common stockholders

188,823

177,471

212,160

181,230

222,313

Earnings per diluted common share

1.10

1.03

1.23

1.05

1.28

Return on average assets (annualized)

1.01

%

0.96

%

1.15

%

1.01

%

1.23

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

14.29

14.17

16.30

14.49

17.51

Return on average common stockholders’ equity (annualized)

8.67

8.40

10.01

9.03

11.00

Non-interest income as a percentage of total revenue

8.92

6.88

14.89

10.05

13.34

Asset quality:

Allowance for credit losses on loans and leases

$

687,798

$

669,355

$

641,442

$

635,737

$

635,438

Nonperforming assets

427,274

374,884

289,254

218,600

218,402

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

1.32

%

1.30

%

1.26

%

1.25

%

1.27

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

0.27

0.26

0.29

0.27

0.23

Nonperforming loans and leases / total loans and leases

0.82

0.72

0.56

0.41

0.43

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

0.82

0.73

0.57

0.43

0.44

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

161.60

181.48

226.17

303.39

295.48

Other ratios:

Tangible equity (1)

7.85

%

7.56

%

7.54

%

8.12

%

7.62

Tangible common equity (1)

7.48

7.18

7.15

7.73

7.22

Tier 1 risk-based capital (2)

11.75

11.09

11.08

11.62

11.64

Total risk-based capital (2)

14.03

13.28

13.21

13.72

13.79

Common equity tier 1 risk-based capital (2)

11.23

10.59

10.57

11.11

11.12

Stockholders’ equity / total assets

11.58

11.46

11.49

11.60

11.21

Net interest margin

3.36

3.32

3.35

3.42

3.49

Efficiency ratio (1)

45.49

46.22

45.25

43.04

41.75

Equity and share related:

Common equity

$

8,914,071

$

8,525,289

$

8,463,519

$

8,406,017

$

7,915,222

Book value per common share

52.00

49.74

49.07

48.87

46.00

Tangible book value per common share (1)

33.26

30.82

30.22

32.39

29.48

Common stock closing price

46.61

43.59

50.77

50.76

40.31

Dividends declared per common share

0.40

0.40

0.40

0.40

0.40

Common shares issued and outstanding

171,428

171,402

172,464

172,022

172,056

Weighted-average common shares outstanding - Basic

169,569

169,675

170,445

170,415

171,210

Weighted-average common shares outstanding - Diluted

169,894

169,937

170,704

170,623

171,350

 


(1) See "Non-GAAP to GAAP Reconciliations" section beginning on page 19.


(2) Presented as preliminary for September 30, 2024, and actual for the remaining periods.

WEBSTER FINANCIAL CORPORATIONConsolidated Balance Sheets (unaudited)

(In thousands)

September 30,2024

June 30,2024



September 30,2023

Assets:

Cash and due from banks

$

721,261

$

333,138

$

406,300

Interest-bearing deposits

2,476,290

1,202,515

1,766,431

Investment securities:












Available-for-sale

8,594,978

7,808,874

7,653,391

Held-to-maturity, net

8,565,936

8,637,654

6,875,772

Total investment securities, net

17,160,914

16,446,528

14,529,163

Loans held for sale

117,615

248,137

46,267

Loans and leases:












Commercial

20,120,992

19,492,433

19,691,486

Commercial real estate

21,691,377

22,277,813

20,583,254

Residential mortgages

8,576,612

8,284,297

8,228,451

Consumer

1,558,034

1,518,922

1,584,955

Total loans and leases

51,947,015

51,573,465

50,088,146

Allowance for credit losses on loans and leases

(687,798)

(669,355)

(635,438)

Total loans and leases, net

51,259,217

50,904,110

49,452,708

Federal Home Loan Bank and Federal Reserve Bank stock

360,795

348,263

306,085

Premises and equipment, net

411,070

417,700

431,698

Goodwill and other intangible assets, net

3,212,050

3,242,193

2,843,217

Cash surrender value of life insurance policies

1,247,624

1,241,367

1,242,648

Deferred tax assets, net

273,174

354,482

478,926

Accrued interest receivable and other assets

2,213,890

2,099,673

1,627,408

Total assets

$

79,453,900

$

76,838,106

$

73,130,851

Liabilities and Stockholders' Equity:

Deposits:












Demand

$

10,744,524

$

9,996,274

$

11,410,063

Health savings accounts

8,951,383

8,474,857

8,229,889

Interest-bearing checking

10,016,651

9,509,202

8,826,265

Money market

20,460,382

19,559,083

17,755,198

Savings

6,921,459

6,965,774

6,622,833

Certificates of deposit

6,020,031

5,861,431

5,150,139

Brokered certificates of deposit

1,400,000

1,910,071

2,337,380

Total deposits

64,514,430

62,276,692

60,331,767

Securities sold under agreements to repurchase and other borrowings

100,232

239,524

157,491

Federal Home Loan Bank advances

3,110,205

2,809,843

1,810,218

Long-term debt

910,963

912,743

1,050,539

Accrued expenses and other liabilities

1,620,020

1,790,036

1,581,635

Total liabilities

70,255,850

68,028,838

64,931,650

Preferred stock

283,979

283,979

283,979

Common stockholders' equity

8,914,071

8,525,289

7,915,222

Total stockholders’ equity

9,198,050

8,809,268

8,199,201

Total liabilities and stockholders' equity

$

79,453,900

$

76,838,106

$

73,130,851

WEBSTER FINANCIAL CORPORATIONConsolidated Statements of Income (unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

(In thousands, except per share data)

2024

2023

2024

2023

Interest income:

Interest and fees on loans and leases

$

809,184

$

793,626

$

2,399,326

$

2,281,955

Interest on investment securities

176,722

113,395

485,134

321,964

Loans held for sale

5,400

17

11,075

454

Other interest and dividends

12,757

23,751

36,664

90,740

Total interest income

1,004,063

930,789

2,932,199

2,695,113

Interest expense:

Deposits

371,075

293,955

1,068,309

695,625

Borrowings

43,105

49,698

133,971

233,240

Total interest expense

414,180

343,653

1,202,280

928,865

Net interest income

589,883

587,136

1,729,919

1,766,248

Provision for credit losses

54,000

36,500

158,500

114,747

Net interest income after provision for loan and lease losses

535,883

550,636

1,571,419

1,651,501

Non-interest income:

Deposit service fees

38,863

41,005

122,479

131,859

Loan and lease related fees

18,513

19,966

57,614

63,499

Wealth and investment services

8,367

7,254

24,847

21,232

Cash surrender value of life insurance policies

8,020

6,620

20,325

19,641

(Loss) on sale of investment securities, net

(19,597)

-

(79,338)

(16,795)

Other income

3,575

15,537

53,465

31,086

Total non-interest income

57,741

90,382

199,392

250,522

Non-interest expense:

Compensation and benefits

194,736

180,333

570,126

526,838

Occupancy

18,879

18,617

53,421

59,042

Technology and equipment

56,696

55,261

147,835

151,442

Marketing

4,224

4,810

12,612

13,446

Professional and outside services

16,001

26,874

43,048

88,693

Intangible assets amortization

8,491

8,899

26,401

27,589

Deposit insurance

13,555

13,310

52,843

39,356

Other expenses

36,376

54,474

104,616

132,728

Total non-interest expense

348,958

362,578

1,010,902

1,039,134

Income before income taxes

244,666

278,440

759,909

862,889

Income tax expense

51,681

51,965

168,968

180,442

Net income

192,985

226,475

590,941

682,447

Preferred stock dividends

(4,162)

(4,162)

(12,487)

(12,487)

Net income available to common stockholders

$

188,823

$

222,313

$

578,454

$

669,960

 


Weighted-average common shares outstanding - Diluted

169,894

171,350

170,226

172,326

Earnings per common share:

Basic

$

1.10

$

1.29

$

3.37

$

3.85

Diluted

1.10

1.28

3.36

3.85

WEBSTER FINANCIAL CORPORATIONFive Quarter Consolidated Statements of Income (unaudited)

Three Months Ended

(In thousands, except per share data)

September 30,2024

June 30,2024



March 31,2024



December 31,2023



September 30,2023

Interest income:

Interest and fees on loans and leases

$

809,184

$

798,097

$

792,045

$

789,423

$

793,626

Interest on investment securities

176,722

160,827

147,585

128,924

113,395

Loans held for sale

5,400

5593

82

280

17

Other interest and dividends

12,757

11,769

12,138

14,520

23,751

Total interest income

1,004,063

976,286

951,850

933,147

930,789

Interest expense:

Deposits

371,075

361,263

335,971

325,793

293,955

Borrowings

43,105

42,726

48,140

36,333

49,698

Total interest expense

414,180

403,989

384,111

362,126

343,653

Net interest income

589,883

572,297

567,739

571,021

587,136

Provision for credit losses

54,000

59,000

45,500

36,000

36,500

Net interest income after provision for loan and lease losses

535,883

513,297

522,239

535,021

550,636

Non-interest income:

Deposit service fees

38,863

41,027

42,589

37,459

41,005

Loan and lease related fees

18,513

19,334

19,767

21,362

19,966

Wealth and investment services

8,367

8,556

7,924

7,767

7,254

Cash surrender value of life insurance policies

8,020

6,359

5,946

6,587

6,620

(Loss) on sale of investment securities, net

(19,597)

(49,915)

(9,826)

(16,825)

-

Other income

3,575

16,937

32,953

7,465

15,537

Total non-interest income

57,741

42,298

99,353

63,815

90,382

Non-interest expense:

Compensation and benefits

194,736

186,850

188,540

184,914

180,333

Occupancy

18,879

15,103

19,439

18,478

18,617

Technology and equipment

56,696

45,303

45,836

46,486

55,261

Marketing

4,224

4,107

4,281

5,176

4,810

Professional and outside services

16,001

14,066

12,981

18,804

26,874

Intangible assets amortization

8,491

8,716

9,194

8,618

8,899

Deposit insurance

13,555

15,065

24,223

58,725

13,310

Other expenses

36,376

36,811

31,429

36,020

54,474

Total non-interest expense

348,958

326,021

335,923

377,221

362,578

Income before income taxes

244,666

229,574

285,669

221,615

278,440

Income tax expense

51,681

47,941

69,346

36,222

51,965

Net income

192,985

181,633

216,323

185,393

226,475

Preferred stock dividends

(4,162)

(4,162)

(4,163)

(4,163)

(4,162)

Net income available to common stockholders

$

188,823

$

177,471

$

212,160

$

181,230

$

222,313

 


Weighted-average common shares outstanding - Diluted

169,894

169,937

170,704

170,623

171,350

Earnings per common share:

Basic

$

1.10

$

1.03

$

1.23

$

1.05

$

1.29

Diluted

1.10

1.03

1.23

1.05

1.28

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

Three Months Ended September 30,

2024

2023

(Dollars in thousands)

Average balance

Interest

Yield/rate

Average balance


Interest

Yield/rate

Assets:

Interest-earning assets:

Loans and leases

$

51,752,193

$

820,209

6.22

%

$

50,912,188

$

804,930

6.20

%

Investment securities (1)

16,886,464

179,356

4.10

14,686,798

119,997

3.09

Federal Home Loan and Federal Reserve Bank stock

340,330

4,383

5.12

355,495

7,619

8.50

Interest-bearing deposits

629,180

8,374

5.21

1,187,096

16,132

5.32

Loans held for sale

216,735

5,400

9.97

6,756

17

1.03

Total interest-earning assets

69,824,902

$

1,017,722

5.69

%

67,148,333

$

948,695

5.49

%

Non-interest-earning assets

6,980,399

6,459,493

Total assets

$

76,805,301

$

73,607,826

Liabilities and Stockholders' Equity:

Interest-bearing liabilities:

Demand deposits

$

10,243,045

$

-

-

%

$

11,335,734

$

-

-

%

Health savings accounts

8,546,941

3,257

0.15

8,235,632

3,126

0.15

Interest-bearing checking, money market and savings

36,599,576

286,280

3.11

32,673,899

214,891

2.61

Certificates of deposit and brokered deposits

7,190,093

81,538

4.51

7,342,757

75,938

4.10

Total deposits

62,579,655

371,075

2.36

59,588,022

293,955

1.96

 


Securities sold under agreements to repurchase and other borrowings

125,738

38

0.12

170,256

50

0.12

Federal Home Loan Bank advances

2,535,497

35,172

5.43

2,945,136

40,196

5.34

Long-term debt (1)

911,834

7,895

3.56

1,051,380

9,452

3.70

Total borrowings

3,573,069

43,105

4.77

4,166,772

49,698

4.72

Total interest-bearing liabilities

66,152,724

$

414,180

2.49

%

63,754,794

$

343,653

2.14

%

Non-interest-bearing liabilities

1,657,443

1,482,563

Total liabilities

67,810,167

65,237,357

 


Preferred stock

283,979

283,979

Common stockholders' equity

8,711,155

8,086,490

Total stockholders' equity

8,995,134

8,370,469

Total liabilities and stockholders' equity

$

76,805,301

$

73,607,826

Tax-equivalent net interest income

603,542

605,042

Less: Tax-equivalent adjustments

(13,659)

(17,906)

Net interest income

$

589,883

$

587,136

Net interest margin

3.36

%

3.49

%

 


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

Nine Months Ended September 30,

2024

2023

(Dollars in thousands)

Average balance

Interest

Yield/rate

Average balance


Interest

Yield/rate

Assets:

Interest-earning assets:

Loans and leases

$

51,376,513

$

2,430,382

6.23

%

$

50,733,691

$

2,313,030

6.02

%

Investment securities (1)

16,505,404

497,931

3.87

14,700,296

341,998

2.95

Federal Home Loan and Federal Reserve Bank stock

340,222

13,901

5.46

442,429

19,204

5.80

Interest-bearing deposits

563,217

22,763

5.31

1,872,657

71,536

5.04

Loans held for sale

150,985

11,075

9.78

35,982

454

1.68

Total interest-earning assets

68,936,341

$

2,976,052

5.65

%

67,785,055

$

2,746,222

5.30

%

Non-interest-earning assets

7,091,307

6,271,968

Total assets

$

76,027,648

$

74,057,023

Liabilities and Stockholders' Equity:

Interest-bearing liabilities:

Demand deposits

$

10,327,076

$

-

-

%

$

11,775,500

$

-

-

%

Health savings accounts

8,560,303

9,654

0.15

8,259,408

9,243

0.15

Interest-bearing checking, money market and savings

35,227,682

799,939

3.03

31,442,258

516,646

2.20

Certificates of deposit and brokered deposits

7,508,481

258,716

4.60

6,192,415

169,736

3.66

Total deposits

61,623,542

1,068,309

2.32

57,669,581

695,625

1.61

 


Securities sold under agreements to repurchase and other borrowings

198,029

3,260

2.16

430,989

7,940

2.43

Federal Home Loan Bank advances

2,551,535

106,266

5.47

5,104,372

196,878

5.09

Long-term debt (1)

935,370

24,445

3.58

1,061,643

28,422

3.68

Total borrowings

3,684,934

133,971

4.82

6,597,004

233,240

4.69

Total interest-bearing liabilities

65,308,476

$

1,202,280

2.46

%

64,266,585

$

928,865

1.93

%

Non-interest-bearing liabilities

1,888,947

1,462,723

Total liabilities

67,197,423

65,729,308

 


Preferred stock

283,979

283,979

Common stockholders' equity

8,546,246

8,043,736

Total stockholders' equity

8,830,225

8,327,715

Total liabilities and stockholders' equity

$

76,027,648

$

74,057,023

Tax-equivalent net interest income

1,773,772

1,817,357

Less: Tax-equivalent adjustments

(43,853)

(51,109)

Net interest income

$

1,729,919

$

1,766,248

Net interest margin

3.34

%

3.49

%

 


(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)

September 30,2024

June 30,2024


March 31,2024


December 31,2023


September 30,2023

Loans and leases (actual):

Commercial non-mortgage

$

18,657,089

 

$

18,021,758

 

$

17,976,128

 

$

18,214,261

 

$

18,058,524

 

Asset-based lending

1,463,903

 

1,470,675

 

1,492,886

 

1,557,841

 

1,632,962

 

Commercial real estate

21,691,377

 

22,277,813

 

21,869,502

 

21,157,732

 

20,583,254

 

Residential mortgages

8,576,612

 

8,284,297

 

8,226,154

 

8,227,923

 

8,228,451

 

Consumer

1,558,034

 

1,518,922

 

1,533,972

 

1,568,295

 

1,584,955

 

Total loans and leases

51,947,015

 

51,573,465

 

51,098,642

 

50,726,052

 

50,088,146

 

Allowance for credit losses on loans and leases

(687,798)

(669,355)

(641,442)

(635,737)

(635,438)

Total loans and leases, net

$

51,259,217

 

$

50,904,110

 

$

50,457,200

 

$

50,090,315

 

$

49,452,708

 

Loans and leases (average):

Commercial non-mortgage

$

18,166,258

 

$

17,995,654

 

$

18,235,402

 

$

18,181,417

 

$

18,839,776

 

Asset-based lending

1,452,794

 

1,473,175

 

1,523,616

 

1,588,350

 

1,663,481

 

Commercial real estate

22,215,293

 

22,186,566

 

21,403,765

 

20,764,834

 

20,614,334

 

Residential mortgages

8,390,613

 

8,252,397

 

8,225,151

 

8,240,390

 

8,200,938

 

Consumer

1,527,235

 

1,527,007

 

1,550,484

 

1,577,349

 

1,593,659

 

Total loans and leases

$

51,752,193

 

$

51,434,799

 

$

50,938,418

 

$

50,352,340

 

$

50,912,188

 

 

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

(Dollars in thousands)

September 30,2024

June 30,2024


March 31,2024


December 31,2023


September 30,2023

Nonperforming loans and leases:

Commercial non-mortgage

$

215,834

 

$

210,906

 

$

203,626

 

$

134,617

 

$

121,067

 

Asset-based lending

29,791

 

29,791

 

34,915

 

35,090

 

10,350

 

Commercial real estate

150,711

 

96,337

 

14,323

 

11,314

 

31,004

 

Residential mortgages

9,098

 

11,345

 

8,407

 

5,591

 

27,312

 

Consumer

20,183

 

20,457

 

22,341

 

22,932

 

25,320

 

Total nonperforming loans and leases

$

425,617

 

$

368,836

 

$

283,612

 

$

209,544

 

$

215,053

 

Other real estate owned and repossessed assets:

Commercial non-mortgage

$

504

 

$

5,013

 

$

5,540

 

$

8,954

 

$

2,687

 

Residential mortgages

221

 

-

 

-

 

-

 

662

 

Consumer

932

 

1,035

 

102

 

102

 

-

 

Total other real estate owned and repossessed assets

$

1,657

 

$

6,048

 

$

5,642

 

$

9,056

 

$

3,349

 

Total nonperforming assets

$

427,274

 

$

374,884

 

$

289,254

 

$

218,600

 

$

218,402

 

Past due 30-89 days:

Commercial non-mortgage

$

45,123

 

$

134,794

 

$

15,365

 

$

7,071

 

$

38,875

 

Commercial real estate

36,110

 

10,284

 

72,999

 

9,002

 

3,491

 

Residential mortgages

18,153

 

13,008

 

17,580

 

21,047

 

16,208

 

Consumer

9,471

 

8,185

 

6,824

 

9,417

 

12,016

 

Total past due 30-89 days

$

108,857

 

$

166,271

 

$

112,768

 

$

46,537

 

$

70,590

 

Past due 90 days or more and accruing

71

 

9

 

12,460

 

52

 

138

 

Total past due loans and leases

$

108,928

 

$

166,280

 

$

125,228

 

$

46,589

 

$

70,728

 

 

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

Three Months Ended

(Dollars in thousands)

September 30,2024

June 30,2024


March 31,2024


December 31,2023


September 30,2023

ACL on loans and leases, beginning balance

$

669,355

 

$

641,442

 

$

635,737

 

$

635,438

 

$

628,911

 

Provision

53,869

 

61,041

 

43,194

 

34,300

 

35,839

 

Charge-offs:
















Commercial portfolio

36,362

 

33,356

 

38,461

 

28,794

 

27,360

 

Consumer portfolio

997

 

1,418

 

1,330

 

6,878

 

3,642

 

Total charge-offs

37,359

 

34,774

 

39,791

 

35,672

 

31,002

 

Recoveries:
















Commercial portfolio

377

 

360

 

553

 

396

 

292

 

Consumer portfolio

1,556

 

1,286

 

1,749

 

1,275

 

1,398

 

Total recoveries

1,933

 

1,646

 

2,302

 

1,671

 

1,690

 

Total net charge-offs

35,426

 

33,128

 

37,489

 

34,001

 

29,312

 

ACL on loans and leases, ending balance

$

687,798

 

$

669,355

 

$

641,442

 

$

635,737

 

$

635,438

 

ACL on unfunded loan commitments, ending balance

22,598

 

22,456

 

24,495

 

24,734

 

23,040

 

ACL, ending balance

$

710,396

 

$

691,811

 

$

665,937

 

$

660,471

 

$

658,478

 

 

WEBSTER FINANCIAL CORPORATIONNon-GAAP to GAAP Reconciliations

Three Months Ended

(In thousands, except per share data)

September 30,2024

June 30,2024


March 31,2024


December 31,2023


September 30,2023

Efficiency ratio:

Non-interest expense

$

348,958

 

$

326,021

 

$

335,923

 

$

377,221

 

$

362,578

 

Less: Foreclosed property activity

(687)

(364)

(330)

(96)

(492)

Intangible assets amortization

8,491

 

8,716

 

9,194

 

8,618

 

8,899

 

Operating lease depreciation

197

 

560

 

663

 

900

 

1,146

 

FDIC special assessment

(1,544)

-

 

11,862

 

47,164

 

-

 

Merger related expenses (1)

-

 

-

 

3,139

 

30,679

 

61,625

 

Strategic restructuring costs and other

22,169

 

-

 

-

 

-

 

-

 

Adjusted non-interest expense

$

320,332

 

$

317,109

 

$

311,395

 

$

289,956

 

$

291,400

 

Net interest income

$

589,883

 

$

572,297

 

$

567,739

 

$

571,021

 

$

587,136

 

Add: Tax-equivalent adjustment

13,659

 

14,315

 

15,879

 

17,830

 

17,906

 

Non-interest income

57,741

 

42,298

 

99,353

 

63,815

 

90,382

 

Other income (2)

7,448

 

7,802

 

7,626

 

5,099

 

3,614

 

Less: Operating lease depreciation

197

 

560

 

663

 

900

 

1,146

 

(Loss) on sale of investment securities, net

(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

$

704,108

 

$

686,067

 

$

688,105

 

$

673,690

 

$

697,892

 

Efficiency ratio

45.49

%

46.22

%

45.25

%

43.04

%

41.75

%

ROATCE:

Net income

$

192,985

 

$

181,633

 

$

216,323

 

$

185,393

 

$

226,475

 

Less: Preferred stock dividends

4,162

 

4,162

 

4,163

 

4,163

 

4,162

 

Add: Intangible assets amortization, tax-effected

6,708

 

6,886

 

7,263

 

6,808

 

7,030

 

Adjusted net income

$

195,531

 

$

184,357

 

$

219,423

 

$

188,038

 

$

229,343

 

Adjusted net income, annualized basis

$

782,124

 

$

737,428

 

$

877,692

 

$

752,152

 

$

917,372

 

Average stockholders' equity

$

8,995,134

 

$

8,733,737

 

$

8,759,992

 

$

8,312,798

 

$

8,370,469

 

Less: Average preferred stock

283,979

 

283,979

 

283,979

 

283,979

 

283,979

 

Average goodwill and other intangible assets, net

3,238,115

 

3,246,940

 

3,090,751

 

2,838,770

 

2,847,560

 

Average tangible common stockholders' equity

$

5,473,040

 

$

5,202,818

 

$

5,385,262

 

$

5,190,049

 

$

5,238,930

 

Return on average tangible common stockholders' equity

14.29

%

14.17

%

16.30

%

14.49

%

17.51

%

(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.

 

(In thousands, except per share data)

September 30,2024

June 30,2024


March 31,2024


December 31,2023


September 30,2023

Tangible equity:

Stockholders' equity

$

9,198,050

 

$

8,809,268

 

$

8,747,498

 

$

8,689,996

 

$

8,199,201

 

Less: Goodwill and other intangible assets, net

3,212,050

 

3,242,193

 

3,250,909

 

2,834,600

 

2,843,217

 

Tangible stockholders' equity

$

5,986,000

 

$

5,567,075

 

$

5,496,589

 

$

5,855,396

 

$

5,355,984

 

Total assets

$

79,453,900

 

$

76,838,106

 

$

76,161,693

 

$

74,945,249

 

$

73,130,851

 

Less: Goodwill and other intangible assets, net

3,212,050

 

3,242,193

 

3,250,909

 

2,834,600

 

2,843,217

 

Tangible assets

$

76,241,850

 

$

73,595,913

 

$

72,910,784

 

$

72,110,649

 

$

70,287,634

 

Tangible equity

7.85

%

7.56

%

7.54

%

8.12

%

7.62

%

Tangible common equity:

Tangible stockholders' equity

$

5,986,000

 

$

5,567,075

 

$

5,496,589

 

$

5,855,396

 

$

5,355,984

 

Less: Preferred stock

283,979

 

283,979

 

283,979

 

283,979

 

283,979

 

Tangible common stockholders' equity

$

5,702,021

 

$

5,283,096

 

$

5,212,610

 

$

5,571,417

 

$

5,072,005

 

Tangible assets

$

76,241,850

 

$

73,595,913

 

$

72,910,784

 

$

72,110,649

 

$

70,287,634

 

Tangible common equity

7.48

%

7.18

%

 

7.15

%

7.73

%

7.22

%

Tangible book value per common share:

Tangible common stockholders' equity

$

5,702,021

 

$

5,283,096

 

$

5,212,610

 

$

5,571,417

 

$

5,072,005

 

Common shares outstanding

171,428

 

171,402

 

172,464

 

172,022

 

172,056

 

Tangible book value per common share

$

33.26

 

$

30.82

 

$

30.22

 

$

32.39

 

$

29.48

 

Core deposits:

Total deposits

$

64,514,430

 

$

62,276,692

 

$

60,747,743

 

$

60,784,284

 

$

60,331,767

 

Less: Certificates of deposit

6,020,031

 

5,861,431

 

5,928,773

 

5,574,048

 

5,150,139

 

Brokered certificates of deposit

1,400,000

 

1,910,071

 

1,008,547

 

2,890,411

 

2,337,380

 

Core deposits

$

57,094,399

 

$

54,505,190

 

$

53,810,423

 

$

52,319,825

 

$

52,844,248

 

 

Three Months EndedSeptember 30,2024

Adjusted ROATCE:

Net income
$

192,985

 

Less: Preferred stock dividends

4,162

 

Add: Intangible assets amortization, tax-effected

6,708

 

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

14,283

 

Exit of non-core operations, tax effected

11,644

 

Strategic restructuring costs and other, tax-effected

16,158

 

FDIC special assessment, tax-effected

(1,125)

Adjusted net income
$

236,491

 

Adjusted net income, annualized basis
$

945,964

 

Average stockholders' equity
$

8,995,134

 

Less: Average preferred stock

283,979

 

Average goodwill and other intangible assets, net

3,238,115

 

Average tangible common stockholders' equity
$

5,473,040

 

Adjusted return on average tangible common stockholders' equity

17.28

%

Adjusted ROAA:

Net income
$

192,985

 

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

14,283

 

Exit of non-core operations, tax-effected

11,644

 

Strategic restructuring costs and other, tax-effected

16,158

 

FDIC special assessment, tax-effected

(1,125)

Adjusted net income
$

233,945

 

Adjusted net income, annualized basis
$

935,780

 

Average assets
$

76,805,301

 

Adjusted return on average assets

1.22

%

GAAP to adjusted reconciliation:

Three Months Ended September 30, 2024

(In millions, except per share data)

Pre-Tax Income

Net Income Available to Common Stockholders

Diluted EPS

Reported (GAAP)

$

244.7

 

$

188.8

 

$

1.10

 

Loss on sale of investment securities, net

19.6

 

14.3

 

0.08

 

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

(1.5)

(1.1)

(0.01)

Adjusted (non-GAAP)

$

300.9

 

$

229.8

 

$

1.34

 

Note: Totals may not sum due to rounding

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241016084561/en/

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