Webster Financial Corporation reported a net income of $226.9 million for the first quarter of 2025, reflecting an increase from $216.3 million in the same period of 2024. The earnings per diluted share rose to $1.30, up from $1.23 year-over-year. The company's return on average assets remained stable at 1.15%, while the return on average common stockholders' equity slightly decreased to 9.94% from 10.01%. Total revenue for the quarter was $704.8 million, compared to $667.1 million in the prior year, driven by a 7.8% increase in net interest income, which reached $612.2 million.
In terms of asset quality, Webster Financial saw an increase in the allowance for credit losses (ACL) on loans and leases, which rose to $713.3 million from $689.6 million at the end of 2024. The non-performing assets also increased significantly to $564.7 million, up from $461.8 million at the end of the previous year. The ACL as a percentage of total loans and leases was 1.34%, compared to 1.31% at the end of 2024. The provision for credit losses increased by 70.3% to $77.5 million, attributed to macroeconomic uncertainties and risk rating migrations.
Strategically, Webster Financial completed the acquisition of Ametros Financial Corporation in January 2024, which is expected to enhance its healthcare financial services segment. This acquisition is anticipated to provide a new source of low-cost deposits and non-interest income. The company also reported a significant increase in deposits, totaling $65.6 billion as of March 31, 2025, up from $64.8 billion at the end of 2024, primarily driven by growth in money market and health savings accounts.
Looking ahead, Webster Financial expressed cautious optimism regarding its performance amid economic uncertainties, including potential inflation and recession risks. The company believes its diverse business model, strong capital position, and effective risk management strategies will enable it to navigate these challenges. The management remains focused on maintaining a well-capitalized status, with both the company and the bank classified as "well-capitalized" under regulatory standards.
About WEBSTER FINANCIAL CORP
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