Webster Financial Corporation reported its financial results for the third quarter and the nine months ended September 30, 2024, showing a decline in net income and profitability compared to the same periods in 2023. For Q3 2024, net income was $192.985 million, down from $226.475 million in Q3 2023. Net income available to common stockholders also decreased to $188.823 million from $222.313 million year-over-year. Earnings per diluted share fell to $1.10 from $1.28 in the prior year.

For the nine months ended September 30, 2024, net income totaled $590.941 million, a decrease from $682.447 million in the same period of 2023. Net income available to common stockholders for this period was $578.454 million, down from $669.960 million. Earnings per diluted share for the nine months decreased to $3.36 from $3.85.

The company’s net interest income for Q3 2024 was $589.883 million, slightly up from $587.136 million in Q3 2023, while for the nine months, it decreased to $1.729 billion from $1.766 billion. The net interest margin also saw a decline, dropping from 3.49% in Q3 2023 to 3.36% in Q3 2024. The average yield on interest-earning assets increased to 5.69% from 5.49%, but the average interest-bearing deposits decreased significantly.

Non-interest income for Q3 2024 was $57.741 million, a substantial decrease from $90.382 million in Q3 2023, primarily due to net losses on the sale of investment securities. For the nine months, non-interest income fell to $199.392 million from $250.522 million in the previous year.

The company’s total assets increased to $79.454 billion as of September 30, 2024, up from $74.945 billion at the end of 2023. Total deposits rose to $64.514 billion, reflecting a $3.7 billion increase attributed to higher interest-bearing deposits and seasonal inflows. The allowance for credit losses on loans and leases increased to $687.798 million, up from $635.438 million at the end of 2023, reflecting a challenging macroeconomic environment.

Strategically, Webster Financial completed the acquisition of Ametros on January 24, 2024, which contributed to the formation of a new Healthcare Financial Services segment. The acquisition added $228.2 million in goodwill and is expected to enhance the company’s offerings in consumer-directed healthcare solutions. Additionally, the company realigned its Business Banking operations, reallocating $1.5 billion of loans and $2.2 billion of deposits from Commercial Banking to Consumer Banking.

Overall, Webster Financial's performance in Q3 2024 reflects challenges in profitability and non-interest income, alongside strategic developments aimed at enhancing its market position.