Webster Financial (WBS) Tops Q2 EPS by 5c, Revenues Beat

July 19, 2018 7:33 AM EDT

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Webster Financial (NYSE: WBS) reported Q2 EPS of $0.92, $0.05 better than the analyst estimate of $0.87. Revenue for the quarter came in at $293.4 million versus the consensus estimate of $222.44 million.

  • Earnings applicable to common shareholders of $79.5 million, or $0.86 per diluted share, for the quarter ended June 30, 2018 compared to $59.5 million, or $0.64 per diluted share, for the quarter ended June 30, 2017.
  • Adjusting for $7.2 million related to an accrual for deposit insurance assessments for periods prior to 2018 and $1.4 million of banking center optimization expenses, earnings per diluted share would have been $0.92.

"Webster's second quarter results reflect continued progress in executing on our strategic priorities," said John R. Ciulla, president and chief executive officer. "We achieved record levels of performance as a result of double-digit pre-provision net revenue growth in all three lines of business."

Highlights for the second quarter of 2018:

Revenue of $293.4 million, an increase of 11.8 percent from a year ago, including net interest income of $225.0 million, an increase of 13.8 percent from a year ago.
Loan growth of $752 million, or 4.4 percent from a year ago, with growth of $799 million, or 7.8 percent, in commercial and commercial real estate loans.
Deposit growth of $885 million, or 4.3 percent from a year ago, with growth of $690 million, or 14.3 percent, in health savings account deposits.
Net interest margin of 3.57 percent, up 30 basis points from a year ago.
Non-interest expense of $180.5 million includes $7.2 million related to an accrual for deposit insurance assessments prior to 2018. Excluding this amount, non-interest expense increased 5.4 percent from a year ago.
Efficiency ratio of 57.78 percent excludes the accrual for deposit insurance assessments for periods prior to 2018 and banking center optimization expenses.
Pre-tax, pre-provision net revenue growth of $14.9 million, or 15.2 percent from a year ago, led by HSA Bank\'s growth of 62.5 percent.
Annualized return on average common shareholders\' equity of 12.22 percent compared to 9.63 percent a year ago; annualized return on average tangible common shareholders\' equity (non-GAAP) of 15.76 percent compared to 12.65 percent a year ago.

"Year-over-year revenue growth exceeded 10 percent for the second consecutive quarter, led by a 30 basis point increase in the net interest margin,\" said Glenn MacInnes, executive vice president and chief financial officer. \"Our balance sheet structure positions us well for future growth."

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



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