- Total average deposits were $64.97 billion, which missed the estimate of $65.63 billion.
- Total average loans were nearly on target at $52.57 billion, slightly below the estimate of $52.58 billion.
- Net interest income came in at $612.2 million, less than the expected $614.6 million.
- The net interest margin exceeded expectations at 3.48%, compared to the estimated 3.44%.
- Provisions for credit losses were significantly increased to $77.5 million, surpassing the expected $53.8 million.
- Earnings per share stood at $1.30, below the forecast of $1.38.
- Total revenue was $704.8 million, falling short of the estimated $707.5 million.
- Tangible book value per share was reported at $33.97.
- Net charge-offs were recorded at $55.0 million, higher than the anticipated $48.2 million.
- The adjusted efficiency ratio was efficient at 45.8%.
- The company highlighted a strategic increase in its allowance for credit losses to prepare for various economic scenarios.
- The investment community remains optimistic with 14 buy ratings, 2 hold ratings, and no sell ratings.
A look at Webster Financial Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Webster Financial Corporation, a bank holding company, appears to have a promising long-term outlook based on its Smartkarma Smart Scores. The company received solid scores in key areas, with a strong Value score of 4 indicating its favorable valuation, and a robust Dividend score of 4 reflecting its ability to provide attractive dividends to investors. Additionally, Webster scored well in Resilience, with a score of 4, suggesting its ability to weather challenges effectively.
While Webster Financial scored slightly lower in Growth and Momentum, with scores of 3 in each category, the company’s overall outlook seems positive given its strengths in Value, Dividend, and Resilience. With a focus on providing a wide range of financial services to individuals, families, and businesses in specific regions, Webster Financial may offer stability and value for investors seeking long-term opportunities in the banking sector.
Disclaimer: This article by Smartkarma is general in nature and 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. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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