Webster Financial (WBS) Tops Q4 EPS by 30c, Revenues Beat

January 21, 2021 7:33 AM EST

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Webster Financial (NYSE: WBS) reported Q4 EPS of $0.99, $0.30 better than the analyst estimate of $0.69. Revenue for the quarter came in at $293.7 million versus the consensus estimate of $221.39 million.

Highlights for the fourth quarter of 2020:

  • Revenue of $293.7 million; $297.4 million excluding $3.7 million in hedge termination costs related to debt prepayments.
  • Loan growth of $1.6 billion, or 8.0 percent from a year ago, led by commercial and commercial real estate, which increased 16.1 percent. Excluding Paycheck Protection Program (PPP) loans, total loan growth was $348 million, or 1.7 percent.
  • Results include a Current Expected Credit Loss (CECL) provision of $(1.0) million with a reserve decrease of $10.4 million compared to the prior quarter, resulting in an allowance coverage of 1.66 percent, or 1.76 percent excluding $1.3 billion of PPP loans.
  • Deposit growth of $4.0 billion, or 17.2 percent from a year ago, with growth of $1.7 billion in demand deposits and $704 million in HSA deposits.
  • Results include $42.0 million of charges related to strategic optimization initiatives.
  • Net interest margin of 2.83 percent.
  • Efficiency ratio (non-GAAP) of 60.3 percent.

"I am pleased with the results of the quarter as we continue to deliver for our customers and communities as evidenced, in part, by $1.9 billion of quarterly loan originations while maintaining solid credit quality," said John R. Ciulla, chairman and chief executive officer. "We remain focused on our strategic priorities and positioning ourselves for growth as the macro environment improves in 2021."

"Our continued strong liquidity enabled us to reduce borrowings by $608 million in the quarter and $1.8 billion from a year ago," said Glenn MacInnes, executive vice president and chief financial officer. "The strength of our balance sheet supports our future growth objectives."

For earnings history and earnings-related data on Webster Financial (WBS) click here.

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