Latest news with #WebsterFinancial
Yahoo
3 hours ago
- Business
- Yahoo
Webster Financial (WBS) Stock Is Up, What You Need To Know
What Happened? Shares of regional banking company Webster Financial (NYSE:WBS) jumped 4.3% in the afternoon session after a favorable macroeconomic report showed weaker-than-expected inflation, increasing investor bets on an upcoming Federal Reserve interest rate cut. The soft Consumer Price Index (CPI) report reinforced the view that tariffs have yet to produce significant inflation, fostering a broad 'risk-on' sentiment among investors. Expectations of lower interest rates are particularly beneficial for banks like Webster, as they are expected to stimulate loan demand for products like mortgages and business loans. The positive market mood was further bolstered by news that the U.S.-China tariff truce was extended for another 90 days. Reinforcing this optimism, Webster recently posted strong quarterly results, including a significant year-over-year increase in net income. The shares closed the day at $57.76, up 4.7% from previous close. Is now the time to buy Webster Financial? Access our full analysis report here, it's free. What Is The Market Telling Us Webster Financial's shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business. The previous big move we wrote about was 11 days ago when the stock dropped 3.1% on the news that a surprisingly weak July jobs report and the announcement of sweeping new tariffs fueled fears of an economic slowdown and an impending interest rate cut. The U.S. economy added just 73,000 jobs in July, the weakest gain in over two years, while the unemployment rate rose to 4.2%. This dismal data significantly increased market expectations for a Federal Reserve interest rate cut, with traders now pricing in an 80% probability of a cut in September. Lower interest rates typically harm bank profitability by compressing their net interest margins—the difference between what they earn on loans and pay on deposits. Compounding these worries, the announcement of new tariffs on imports from 92 countries has sparked fears of a global trade war, which could further dampen economic growth and disrupt supply chains, creating a challenging environment for the banking industry. Webster Financial is up 5.4% since the beginning of the year, and at $57.76 per share, it is trading close to its 52-week high of $62.82 from November 2024. Investors who bought $1,000 worth of Webster Financial's shares 5 years ago would now be looking at an investment worth $1,984. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-07-2025
- Business
- Yahoo
Jefferies Keeps Buy Rating on Webster Financial (WBS), Raises Price Target
Webster Financial Corporation (NYSE:WBS) is one of the 10 Best Financial Stocks on Wall Street's Radar. On July 18, Jefferies increased its price target for Webster Financial Corporation (NYSE:WBS) from $70 to $72 while keeping a 'Buy' rating. This decision came after the company reported its Q2 2205 earnings. Webster Financial Corporation (NYSE:WBS) reported core earnings per share of $1.52, surpassing both the consensus estimate of $1.42 and Jefferies' estimate of $1.41. A close up of a hand pressing a mobile banking app displayed on a tablet or smartphone. Webster Financial Corporation's (NYSE:WBS) core pre-provision net revenue (PPNR) for the quarter reached $370 million, exceeding Jefferies' forecast of $356 million. The company's management also raised its net interest income guidance. According to Jefferies, the corporation also reported an improvement in credit quality this quarter and maintained a stable credit outlook. The investment firm noted recent changes in federal law that broadened Health Savings Account (HSA) eligibility. This can significantly grow the addressable market for Webster Financial Corporation's (NYSE:WBS) HSA Bank business. Webster Financial Corporation (NYSE:WBS) is an American bank holding company for Webster Bank, which is a commercial bank that offers a broad range of financial products and services to businesses, individuals, and families. While we acknowledge the potential of WBS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best American Semiconductor Stocks to Buy Now and 11 Best Fintech Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
19-07-2025
- Business
- Yahoo
Webster Financial Second Quarter 2025 Earnings: EPS Beats Expectations
Webster Financial (NYSE:WBS) Second Quarter 2025 Results Key Financial Results Revenue: US$669.3m (up 21% from 2Q 2024). Net income: US$251.7m (up 43% from 2Q 2024). Profit margin: 38% (up from 32% in 2Q 2024). The increase in margin was driven by higher revenue. EPS: US$1.52 (up from US$1.03 in 2Q 2024). AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. All figures shown in the chart above are for the trailing 12 month (TTM) period Webster Financial EPS Beats Expectations Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 7.9%. Looking ahead, revenue is forecast to grow 9.1% p.a. on average during the next 3 years, compared to a 7.5% growth forecast for the Banks industry in the US. Performance of the American Banks industry. The company's shares are up 3.3% from a week ago. Risk Analysis You still need to take note of risks, for example - Webster Financial has 1 warning sign we think you should be aware of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
18-07-2025
- Business
- Yahoo
Webster Financial Tops Q2 Earnings on Higher Fee Income, Stock Gains
Webster Financial WBS reported second-quarter 2025 earnings per share (EPS) of $1.52, which beat the Zacks Consensus Estimate of $1.41. Also, the reported figure compared favorably with the EPS of $1.26 reported a year ago. Following the better-than-expected results, the company's shares rose 2.8% during yesterday's trading session. Results benefited from a rise in net interest income (NII) and non-interest income. Higher loan and deposit balances and a decline in provision were encouraging too. However, an increase in non-interest expenses acted as a spoilsport. Net income applicable to common shareholders (GAAP basis) was $251.7 million, up 43.4% from the prior-year quarter. Webster Financial's Revenues & Expenses Increase Y/Y WBS' total revenues in the quarter increased 16.5% year over year to $715.8 million. The top line surpassed the Zacks Consensus Estimate by 0.6%. NII increased 8.5% year over year to $621.2 million. The net interest margin was 3.44%, up five basis points (bps). Non-interest income was $94.7 million, significantly up from the year-ago quarter reported figure of $42.3 million. In the second quarter of 2024, total non-interest income included losses on the sale of investment securities of $49.9 million. Excluding this item, total non-interest income increased $2.5 million. Non-interest expenses were $345.7 million, up 6% from the year-ago quarter. The increase was primarily driven by investments in risk management infrastructure and a rise in compensation and benefits expenses. The efficiency ratio was 45.40% compared with 46.22% in the prior-year quarter. A decline in the efficiency ratio indicates a rise in profitability. WBS' Loans & Deposit Balance Rise Sequentially As of June 30, 2025, total loans and leases increased 1.2% on a sequential basis to $53.7 billion. Further, total deposits increased 1% from the prior quarter to $66.3 billion. Webster Financial's Credit Quality Mixed Bag Total non-performing assets were $537.1 million as of June 30, 2025, up 43.3% from the year-ago quarter. Allowance for loan losses was 1.35% of the total loans, which increased from 1.30% in the second quarter of 2024. The ratio of net charge-offs to annualized average loans was 0.27%, up from 0.26% in the year-ago period. The provision for credit losses was $46.5 million, down 21.2% year over year. WBS' Capital Ratios Improve As of June 30, 2025, the Tier 1 risk-based capital ratio was 11.84%, which increased from 11.00% as of June 30, 2024. The total risk-based capital ratio was 14.03%, up from the prior-year quarter's 13.28%. Webster Financial's Profitability Ratios Improve Return on average assets was 1.29%, up from 0.96% in the prior-year quarter. At the end of the second quarter, the return on average common stockholders' equity was 11.31%, which rose from 8.40% in the prior-year quarter. Our Viewpoint on WBS Rising NII and non-interest income will boost Webster Financial's top line. Strategic buyouts in the past have fortified its balance sheet, while deposit and loan growth will continue aiding its financials. However, elevated expenses remain a near-term concern. Webster Financial Corporation Price, Consensus and EPS Surprise Webster Financial Corporation price-consensus-eps-surprise-chart | Webster Financial Corporation Quote Webster Financial currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. An Upcoming Bank Release Bank of Hawaii BOH is scheduled to announce second-quarter 2025 numbers on July 28. Over the past seven days, the Zacks Consensus Estimate for BOH's quarterly earnings has been unchanged at $1.04 per share. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Performance of Other Bank Stock Hancock Whitney Corp.'s HWC second-quarter 2025 adjusted earnings per share of $1.37 exceeded the Zacks Consensus Estimate of $1.34. Further, the bottom line rose 4.6% from the prior year quarter. HWC's results benefited from an increase in non-interest income and NII. Also, higher loans were another positive. However, increased adjusted expenses and provisions, alongside lower deposit balances, were headwinds. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bank of Hawaii Corporation (BOH) : Free Stock Analysis Report Webster Financial Corporation (WBS) : Free Stock Analysis Report Hancock Whitney Corporation (HWC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
18-07-2025
- Business
- Yahoo
Webster Financial Corp (WBS) Q2 2025 Earnings Call Highlights: Strong Performance Amidst ...
Return on Tangible Common Equity: 18% Return on Assets (ROA): Nearly 1.3% Revenue Growth: 1.6% over the prior quarter Loan and Deposit Growth: Over 1% in the quarter Share Repurchases: Authorized an additional $700 million; repurchased 1.5 million shares Net Charge-Off Ratio: 27 basis points Total Assets: $82 billion, up $1.6 billion from last quarter Deposits: Increased by $739 million Loan Growth: $616 million or 1.2% link quarter Net Income to Common Shareholders: Up $31 million relative to the prior quarter Earnings Per Share (EPS): $1.52 versus $1.30 in the first quarter Net Interest Margin (NIM): 3.44%, down 4 basis points from the prior quarter Non-Interest Income: $95 million, up $3 million over the prior quarter Non-Interest Expense: $346 million, up $2.1 million link quarter Allowance for Loan Losses: $722 million or 1.35% of loans Tangible Book Value Per Share: $35.13, up over 3% from last quarter Warning! GuruFocus has detected 9 Warning Sign with WBS. Release Date: July 17, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Webster Financial Corp (NYSE:WBS) reported a solid return on tangible common equity of 18% and a return on assets of nearly 1.3% for the second quarter of 2025. The company achieved growth in both loans and deposits of over 1% in the quarter, with overall revenue increasing by 1.6% over the prior quarter. The Board authorized an additional $700 million in share repurchases, and 1.5 million shares were bought back in the quarter. Webster Financial Corp (NYSE:WBS) has a strong capital position, with an increase in the common equity Tier 1 ratio and a stable loan-to-deposit ratio. The healthcare financial services segment, including HSA Bank, is expected to benefit from favorable provisions in the reconciliation bill, potentially increasing deposits by $1 billion to $2.5 billion over the next five years. Negative Points The net interest margin (NIM) decreased by 4 basis points from the prior quarter to 3.44%, with expectations of further pressure in the second half of the year. Deposit costs increased by 3 basis points over the prior quarter, with significant competition in the deposit market. There is a potential impact from proposed tariffs, although Webster Financial Corp (NYSE:WBS) does not have disproportionate exposure to the most affected industries. The allowance for credit losses increased by $9 million, primarily due to balance sheet growth. The company anticipates a modest impact on net interest income from a new debt issuance in the second half of the year. Q & A Highlights Q: Given the current environment and outlook for potential deregulation, what is your willingness to reduce CET1, and what are your thoughts on the term pace of the buyback? A: John Ciulla, Chairman and CEO, stated that their medium-term goal is an 11% CET1 ratio, with a potential long-term target of 10.5% as markets stabilize. For the balance of 2025, the 11% target is appropriate. Regarding capital management and share buybacks, the priority is to grow the balance sheet with full relationship loans. If not feasible, they consider tuck-in acquisitions or returning capital to shareholders through dividends or buybacks. Q: Are you satisfied with current cash balances, and how will the anticipated long-term debt issue impact the NIM? A: Neal Holland, CFO, mentioned they are reaching desired cash levels, which had a 1-basis point impact on NIM this quarter, with an additional 1 basis point expected over the next two quarters. The anticipated debt issuance in the second half of the year will also impact NIM by 1 basis point. Q: How are you thinking about deposit costs for the second half of the year, given your expectation for two rate cuts and interSYNC's strong deposit growth? A: Neal Holland, CFO, explained that they are positioned neutrally regarding interest rate sensitivity. If rate cuts occur, deposit costs are expected to decrease. Without cuts, significant competition on the deposit side limits opportunities to reduce costs, but the team is actively monitoring the situation. Q: With the expansion of the HSA market, will there be any need for new investments in delivery channels or outreach? A: Luis Massiani, President and COO, stated that no significant changes in expenses are expected. They already have a direct-to-consumer channel, which will be leveraged for the new opportunity. Some marketing and education investments will be necessary, but they won't materially change the business's operating expense trajectory. Q: How should we think about the allowance build and provision with the improving credit backdrop? A: John Ciulla, Chairman and CEO, noted that the allowance for credit losses is tied to risk rating migration, loan growth, and portfolio risk ratings. They are comfortable with their current coverage ratio, and growth in coverage would come from balance sheet growth or credit deterioration. Q: How sustainable are the recent C&I and commercial real estate originations, and how are spreads holding up? A: John Ciulla, Chairman and CEO, and Luis Massiani, President and COO, indicated that originations were strong across all categories, with pipelines building for the second half of the year. They expect similar loan growth in the coming quarters, supported by a diversified mix of commercial and consumer opportunities. Q: With the Marathon joint venture, how will loan growth be impacted, and is there a two-way street for loan origination? A: John Ciulla, Chairman and CEO, explained that the joint venture allows them to compete for larger transactions without increasing on-balance-sheet hold sizes. While there is potential for a two-way street in origination, their capabilities will primarily drive the joint venture's originations. Q: What is the outlook for the net interest margin (NIM) given competitive pressures and spread tightening? A: Neal Holland, CFO, reiterated the full-year NIM guidance of approximately 3.4%, expecting to exit the year between 3.35% and 3.40%. Despite competitive deposit pressures and slight spread compression, they focus on net interest income, with NIM as an outcome. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
