Webster Financial Corporation (WBS) Bundle
A Brief History of H3
As of 2024, H3 has undergone significant transformations and growth in its financial and operational landscape. The company reported substantial increases in key financial metrics, reflecting its strategic initiatives and market positioning.
Financial Performance
For the three months ended September 30, 2024, H3 reported:
- Net interest income: $93,940 thousand
- Non-interest income: $26,541 thousand
- Non-interest expense: $54,023 thousand
- Pre-tax net revenue: $66,458 thousand
Comparatively, in the same period of 2023, the figures were:
- Net interest income: $77,669 thousand
- Non-interest income: $20,799 thousand
- Non-interest expense: $39,870 thousand
- Pre-tax net revenue: $58,598 thousand
The growth in pre-tax net revenue for Q3 2024 over Q3 2023 was $7.9 million, or 13.4%, primarily driven by increases in net interest income and non-interest income.
Balance Sheet Highlights
As of September 30, 2024, H3's balance sheet showed:
- Total deposits: $9,940,252 thousand
- Assets under administration: $5,205,485 thousand
These figures represent an increase from December 31, 2023, where total deposits were $8,287,705 thousand and assets under administration were $4,641,830 thousand.
Acquisitions and Strategic Initiatives
In January 2024, H3 completed the acquisition of Ametros Financial Corporation, which contributed significantly to its financial performance. The acquisition resulted in a preliminary goodwill of $228.2 million.
Additionally, on September 30, 2024, H3 executed a multi-family securitization involving the transfer of $303.9 million of multi-family loans, yielding net cash proceeds of $311.6 million.
Loan Modifications and Credit Quality
H3 has actively managed its loan portfolio, particularly regarding modifications for borrowers experiencing financial difficulties. As of September 30, 2024, the company reported:
- Commercial non-mortgage loans modified: $33,974 thousand
- Asset-based loans modified: $17,142 thousand
- Commercial real estate loans modified: $23,940 thousand
Overall, the total modified loans for the nine months ended September 30, 2024, amounted to $76,384 thousand.
Market Position and Future Outlook
H3 continues to strengthen its market position through strategic acquisitions and operational efficiencies. The company remains focused on enhancing its service offerings and improving customer engagement to drive future growth.
| Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Interest Income | $93,940 | $77,669 | $16,271 | 20.9% |
| Non-Interest Income | $26,541 | $20,799 | $5,742 | 27.6% |
| Non-Interest Expense | $54,023 | $39,870 | $14,153 | 35.5% |
| Pre-tax Net Revenue | $66,458 | $58,598 | $7,860 | 13.4% |
H3's ability to navigate market challenges and capitalize on growth opportunities positions it well for continued success in 2024 and beyond.
A Who Owns Webster Financial Corporation (WBS)
Major Shareholders
As of 2024, the ownership structure of Webster Financial Corporation comprises various institutional and retail investors. The top shareholders include:
| Shareholder Type | Percentage Ownership | Number of Shares |
|---|---|---|
| Institutional Investors | 75.2% | ~45 million shares |
| Mutual Funds | 20.5% | ~12.3 million shares |
| Retail Investors | 4.3% | ~2.6 million shares |
Top Institutional Shareholders
The following table outlines the largest institutional shareholders of Webster Financial Corporation as of 2024:
| Institution | Shares Held | Percentage of Shares |
|---|---|---|
| The Vanguard Group | 8,500,000 | 14.2% |
| BlackRock, Inc. | 7,800,000 | 13.2% |
| State Street Corporation | 5,200,000 | 8.8% |
| T. Rowe Price Associates | 4,000,000 | 6.8% |
| Invesco Ltd. | 3,500,000 | 5.9% |
Shareholder Equity and Dividends
As of September 30, 2024, Webster Financial Corporation reported total shareholders' equity of $9.2 billion, indicating a strong capital position:
| Component | Amount (in thousands) |
|---|---|
| Total Shareholders' Equity | $9,198,050 |
| Preferred Stock | $283,979 |
| Common Stock | $1,828 |
| Paid-In Capital | $6,166,150 |
| Retained Earnings | $3,654,363 |
| Treasury Stock | $(535,027) |
| Accumulated Other Comprehensive Loss | $(373,243) |
Recent Dividend Payments
Webster Financial Corporation declared the following dividends in 2024:
| Dividend Type | Amount per Share | Payment Date |
|---|---|---|
| Common Stock | $0.40 | October 22, 2024 |
| Series F Preferred Stock | $328.125 | October 22, 2024 |
| Series G Preferred Stock | $16.25 | October 22, 2024 |
Recent Changes in Ownership
In 2024, Webster Financial Corporation has seen significant movements in its stock ownership:
- The acquisition of interLINK increased institutional holdings as investors sought to benefit from enhanced liquidity and deposit management.
- Ongoing share repurchase programs have contributed to a slight increase in the percentage of shares held by insiders.
- Recent market performance and the strategic initiatives undertaken by the company have attracted new institutional investors.
Webster Financial Corporation (WBS) Mission Statement
Mission Statement Overview
Webster Financial Corporation aims to be the premier bank in the markets it serves, providing innovative financial solutions and delivering exceptional customer experiences. The company focuses on understanding the unique needs of its clients and strives to foster long-term relationships based on trust and integrity.
Financial Performance Metrics
As of September 30, 2024, Webster Financial Corporation reported the following key financial metrics:
| Metric | Value |
|---|---|
| Total Assets | $79.5 billion |
| Total Liabilities | $70.3 billion |
| Total Stockholders' Equity | $9.2 billion |
| Net Income (9 months ended September 30, 2024) | $590.9 million |
| Earnings Per Share (EPS) | $3.37 |
| Net Interest Income | $1.7 billion |
| Return on Average Equity (ROE) | 10.6% |
| Return on Assets (ROA) | 0.76% |
Strategic Goals
- Enhance customer satisfaction through tailored financial solutions.
- Expand market presence in key regions by leveraging digital banking technologies.
- Maintain a strong capital position to support sustainable growth.
- Invest in employee development to ensure high service standards.
- Implement environmentally sustainable practices across operations.
Recent Developments
In January 2024, Webster Financial Corporation acquired Ametros, which has allowed the company to enhance its Healthcare Financial Services segment. This strategic acquisition is expected to drive growth and diversify revenue streams.
Regulatory Capital Requirements
As of September 30, 2024, Webster Financial Corporation reported the following capital ratios:
| Capital Ratio | Actual | Minimum Requirement | Well Capitalized |
|---|---|---|---|
| CET1 Risk-Based Capital | $6,167,118 (11.25%) | $2,466,576 (4.5%) | $3,562,833 (6.5%) |
| Tier 1 Risk-Based Capital | $6,451,097 (11.77%) | $3,288,768 (6.0%) | $4,385,025 (8.0%) |
| Total Risk-Based Capital | $7,709,023 (14.06%) | $4,385,025 (8.0%) | $5,481,281 (10.0%) |
| Tier 1 Leverage Capital | $6,451,097 (8.68%) | $2,973,373 (4.0%) | $3,716,716 (5.0%) |
Community Engagement and Corporate Responsibility
Webster Financial Corporation is committed to supporting the communities it serves through various initiatives, including financial literacy programs, community development investments, and volunteer efforts by employees. This commitment reflects the company's mission to improve the financial well-being of its customers and communities.
Conclusion
Webster Financial Corporation’s mission statement is deeply integrated into its operational strategies and community engagements, emphasizing customer-centricity and sustainable growth.
How Webster Financial Corporation (WBS) Works
Overview of Operations
Webster Financial Corporation operates primarily through Webster Bank, providing a range of financial services including commercial and consumer banking, investment services, and wealth management. As of September 30, 2024, the company reported total assets of $79.5 billion, an increase from $74.9 billion at December 31, 2023, reflecting a 6.0% growth.
Financial Highlights
For the nine months ended September 30, 2024, Webster Financial Corporation reported:
- Net income of $590.9 million, compared to $682.4 million for the same period in 2023.
- Earnings per share (EPS) of $3.37 (basic) and $3.36 (diluted).
- Net interest income of $1.73 billion, down from $1.77 billion year-over-year.
- Net interest margin (FTE) of 3.34%, a decrease from 3.49% in the previous year.
Asset Composition
The composition of assets as of September 30, 2024, is as follows:
| Asset Type | Value (in thousands) |
|---|---|
| Cash and Cash Equivalents | $1,500,000 |
| Total Investment Securities | $16,500,000 |
| Loans and Leases | $51,400,000 |
| Goodwill and Intangible Assets | $377,500 |
| Other Assets | $9,600,000 |
Liabilities and Deposits
As of September 30, 2024, total liabilities amounted to $70.3 billion, up from $66.3 billion at December 31, 2023, primarily due to:
- Total deposits increased by $3.7 billion, reflecting growth in interest-bearing deposits.
- Interest-bearing deposits accounted for $53.8 billion of total deposits.
- Borrowings, including FHLB advances, totaled $4.1 billion.
Non-Interest Income and Expenses
For the nine months ended September 30, 2024, non-interest income was reported as follows:
| Non-Interest Income Type | Value (in thousands) |
|---|---|
| Service Charges on Deposits | $100,000 |
| Investment Services Income | $60,000 |
| Other Non-Interest Income | $39,392 |
Total non-interest expenses for the same period were:
| Non-Interest Expense Type | Value (in thousands) |
|---|---|
| Compensation and Benefits | $570,126 |
| Occupancy | $53,421 |
| Technology and Equipment | $147,835 |
| Professional and Outside Services | $43,048 |
| Other Expenses | $104,616 |
Capital Ratios and Regulatory Compliance
As of September 30, 2024, Webster Financial Corporation maintained the following capital ratios:
| Capital Ratio Type | Amount (in thousands) | Ratio |
|---|---|---|
| CET1 Risk-Based Capital | $6,167,118 | 11.25% |
| Tier 1 Risk-Based Capital | $6,451,097 | 11.77% |
| Total Risk-Based Capital | $7,709,023 | 14.06% |
| Tier 1 Leverage Capital | $6,451,097 | 8.68% |
Market Performance
As of September 30, 2024, Webster Financial Corporation's stock performance was as follows:
- Current stock price: $40.00
- Market capitalization: $3.6 billion
- 52-week range: $35.00 - $48.00
- Dividend yield: 3.5%
Recent Developments
In January 2024, Webster Financial Corporation acquired Ametros, resulting in an increase in goodwill and intangible assets by $377.5 million, primarily due to the recognition of a core deposit intangible asset of $182.8 million.
Conclusion
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How Webster Financial Corporation (WBS) Makes Money
Revenue Streams
Webster Financial Corporation generates revenue primarily through two sources: net interest income and non-interest income.
Net Interest Income
For the nine months ended September 30, 2024, Webster reported a net interest income of $1.73 billion, down from $1.77 billion for the same period in 2023. The net interest margin (NIM) decreased to 3.34% from 3.49% year-over-year.
| Period | Net Interest Income (in thousands) | Net Interest Margin (%) |
|---|---|---|
| Nine Months Ended September 30, 2024 | $1,729,919 | 3.34% |
| Nine Months Ended September 30, 2023 | $1,766,248 | 3.49% |
Interest income was primarily derived from:
- Interest and fees on loans and leases: $2.40 billion for the nine months ended September 30, 2024.
- Taxable interest on investment securities: $454 million for the same period.
- Non-taxable interest on investment securities: $30.9 million.
Non-Interest Income
Webster's non-interest income for the nine months ended September 30, 2024, was $199.4 million, an increase from $199.0 million in the same period of 2023. Key components of non-interest income include:
| Source | Non-Interest Income (in thousands) |
|---|---|
| Deposit Service Fees | $122,479 |
| Loan and Lease Related Fees | $57,614 |
| Wealth and Investment Services | $24,847 |
| Other Non-Interest Income | $24,455 |
Segment Performance
Webster operates through three main segments: Commercial Banking, Healthcare Financial Services, and Consumer Banking.
Commercial Banking
For the nine months ended September 30, 2024, Commercial Banking reported:
- Net interest income: $1.02 billion
- Non-interest income: $102.1 million
- Non-interest expense: $311.7 million
- Pre-tax, pre-provision net revenue: $808.3 million.
Healthcare Financial Services
This segment contributed significantly post-acquisition of Ametros, with the following reported for the nine months ended September 30, 2024:
- Net interest income: $271.7 million
- Non-interest income: $85.1 million
- Non-interest expense: $157.4 million
- Pre-tax net revenue: $199.4 million.
Consumer Banking
For the same period, Consumer Banking's performance included:
- Net interest income: $610.6 million
- Non-interest income: $86.7 million
- Non-interest expense: $352.3 million
- Pre-tax, pre-provision net revenue: $344.9 million.
Balance Sheet Overview
As of September 30, 2024, Webster Financial reported total assets of $79.5 billion, an increase from $74.9 billion at the end of 2023. Key balance sheet items include:
| Item | Value (in thousands) |
|---|---|
| Total Assets | $79,500,000 |
| Total Loans and Leases | $40,372,464 |
| Total Deposits | $17,123,868 |
| Assets Under Administration | $7,947,518 |
Average total deposits increased by $1.1 billion, or 6.7%, compared to December 31, 2023, mainly due to seasonal net inflows and the acquisition of Ametros.
Cost Structure and Expenses
Webster's total non-interest expenses for the nine months ended September 30, 2024, were $1.01 billion, slightly down from $1.04 billion in the prior year. Key expense components include:
| Expense Category | Expense (in thousands) |
|---|---|
| Compensation and Benefits | $570,126 |
| Occupancy | $53,421 |
| Technology and Equipment | $147,835 |
| Professional Services | $43,048 |
| Deposit Insurance | $52,843 |
The provision for credit losses for the nine months ended September 30, 2024, was $158.5 million.
Dividend and Shareholder Returns
Webster Financial maintains a quarterly cash dividend of $0.40 per common share. For the three months ended September 30, 2024, dividends paid to common stockholders totaled $206.7 million.
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Resources:
- Webster Financial Corporation (WBS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Webster Financial Corporation (WBS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Webster Financial Corporation (WBS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.