Reported Q: Q1 2024 Rev YoY: +16.6% EPS YoY: -0.8% Move: +0.11%
Webster Financial
WBS
$73.21 0.11%
Exchange NYSE Sector Financial Services Industry Banks Regional
Q1 2024
Published: May 10, 2024

Company Status Snapshot

Fast view of the latest quarter outcome for WBS

Reported

Report Date

May 10, 2024

Quarter Q1 2024

Revenue

1.05B

YoY: +16.6%

EPS

1.23

YoY: -0.8%

Market Move

+0.11%

Previous quarter: N/A

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Earnings Highlights

  • Revenue of $1.05B up 16.6% year-over-year
  • EPS of $1.23 decreased by 0.8% from previous year
  • Gross margin of 59.1%
  • Net income of 216.32M
  • ""In the fourth quarter, Webster launched the You're Home program, a special purpose credit program offering down payment assistance and flexible credit requirements to help expand homeownership opportunities for low to moderate income first-time homebuyers."" - John Ciulla
WBS
Company WBS

Executive Summary

Webster Financial reported Q1 2024 net income of $216.3 million and adjusted EPS of $1.35, with GAAP EPS of $1.23. Revenue rose 16.6% year over year and 5.4% quarter over quarter to $1.051 billion, while operating income grew to $285.7 million (OA margin ~27.2%). The quarter featured meaningful strategic progress: (i) the closing of the Ametros acquisition, now integrated into Webster’s Healthcare Financial Services segment with HSA Bank, (ii) a disciplined funding mix that grew core deposits by $1.5 billion and reduced brokered deposits, and (iii) ongoing CRE portfolio management in a higher-for-longer environment. Management remains constructive on 2024 NII and ROA/ROE targets, guided by 5% loan growth and 5–7% deposit growth, with NII around $2.4 billion (non-FTE) and non-interest income of $375–$400 million. However, credit metrics modestly shifted higher in Q1—non-performing assets rose, and classified loans increased—reflecting industry-wide risk rating migrations in a still-challenging environment. The company also signaled a deliberate CRE stance to manage concentration toward a 250% of CET1+reserves target over the next several quarters, transitioning toward a more balanced mix over time. Overall, Webster remains well-positioned to grow at mid-to-high single digits outside CRE, supported by a diversified funding base, improving deposit dynamics, and accretion from the Ametros/HSA Bank platform, albeit with near-term headwinds from funding costs and credit normalization.

Key Performance Indicators

Revenue
Increasing
1.05B
QoQ: 5.44% | YoY: 16.58%
Gross Profit
Increasing
621.59M
59.13% margin
QoQ: 3.80% | YoY: 0.37%
Operating Income
Decreasing
285.67M
QoQ: 28.90% | YoY: -0.41%
Net Income
Decreasing
216.32M
QoQ: 16.68% | YoY: -2.12%
EPS
Decreasing
1.23
QoQ: 17.14% | YoY: -0.81%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q1 2025 1,066.09 1.30 +1.4% View
Q4 2024 1,047.59 1.01 +5.1% View
Q3 2024 1,061.80 1.10 +4.0% View
Q2 2024 1,018.58 1.03 -0.4% View
Q1 2024 1,051.20 1.23 +16.6% View