WBS

Webster Financial’s 26.8% return over the past six months has outpaced the S&P 500 by 19.2%, and its stock price has climbed to $72.68 per share. This performance may have investors wondering how to approach the situation. Is there a buying opportunity in Webster Financial, or does it present a risk to your portfolio? Get the full breakdown from our expert analysts, it’s free. Despite the momentum, we're cautious about Webster Financial. Here are three reasons we avoid WBS and a stock we'd rather own. We at StockStory place the most emphasis on long-term growth, but within financials, a stretched historical view may miss recent interest rate changes, market returns, and industry trends. Webster Financial’s recent performance shows its demand has slowed significantly as its annualized revenue growth of 4.6% over the last two years was well below its five-year trend. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business. Topline growth is certainly important, but the overall profitability of this growth matters for the bottom line. For banks, we look at efficiency ratio, which is non-interest expense (salaries, rent, IT, marketing, excluding interest paid out to depositors) as a percentage of total revenue. Markets emphasize efficiency ratio trends over static measurements, recognizing that revenue compositions drive different expense bases. Lower efficiency ratios signal superior performance by indicating that banks are controlling costs effectively relative to their income. For the next 12 months, Wall Street expects Webster Financial to become less profitable as it anticipates an efficiency ratio of 47.6% compared to 46.2% over the past year. Although long-term earnings trends give us the big picture, we like to analyze EPS over a shorter period to see if we are missing a change in the business. Webster Financial’s weak 3% annual EPS growth over the last two years aligns with its revenue trend. On the bright side, this tells us its incremental sales were profitable. Webster Financial isn’t a terrible business, but it doesn’t pass our quality test. With its shares outperforming the market lately, the stock trades at 1.2× forward P/B (or $72.68 per share). While this valuation is fair, the upside isn’t great compared to the potential downside....

STAMFORD, Conn. (AP) — STAMFORD, Conn. (AP) — Webster Financial Corp. (WBS) on Tuesday reported first-quarter earnings of $246.2 million. The bank, based in Stamford, Connecticut, said it had earnings of $1.50 per share. Earnings, adjusted for non-recurring costs, were $1.57 per share. The results beat Wall Street expectations. The average estimate of eight analysts surveyed by Zacks Investment Research was for earnings of $1.53 per share. The holding company for Webster Bank posted revenue of $1.1 billion in the period. Its revenue net of interest expense was $735.9 million, falling short of Street forecasts. Six analysts surveyed by Zacks expected $739.5 million. _____ This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on WBS at https://www.zacks.com/ap/WBS

Webster Financial (WBS) came out with quarterly earnings of $1.57 per share, beating the Zacks Consensus Estimate of $1.53 per share. This compares to earnings of $1.3 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +2.33%. A quarter ago, it was expected that this holding company for Webster Bank would post earnings of $1.52 per share when it actually produced earnings of $1.59, delivering a surprise of +4.61%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Webster Financial, which belongs to the Zacks Banks - Northeast industry, posted revenues of $735.87 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 0.5%. This compares to year-ago revenues of $704.8 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Webster Financial shares have added about 14.1% since the beginning of the year versus the S&P 500's gain of 4.8%. While Webster Financial has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Webster Financial was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complet...

Webster Financial Corporation WBS posted adjusted earnings per share (EPS) of $1.57 for the first quarter of 2026, beating the Zacks Consensus Estimate of $1.53. Also, the reported figure compared favorably with the EPS of $1.30 reported a year ago. Results benefited from a rise in net interest income (NII) and non-interest income. Higher loan and deposit balances and a decline in provision were encouraging, too. However, an increase in non-interest expenses was a headwind. Results excluded transaction expenses, restructuring costs and a benefit related to the FDIC special assessment. After considering these, net income applicable to common shareholders (GAAP basis) was $239.3 million, up 8.6% from the prior-year quarter. Total revenues came in at $735.9 million, missing the consensus mark by 0.5%. The metric rose 4.4% year over year. NII increased 3.6% year over year to $634.4 million. The net interest margin was 3.36%, down 12 basis points. Non-interest income was $101.5 million, up 9.6% from the year-ago quarter’s reported figure of $92.6 million. The increase was primarily driven by increased client hedging activities, the change in the credit valuation adjustment, increased revenues from Ametros, higher deposit service fees, and the acquisition of SecureSave, partially offset by lower loan prepayment and syndication fees. Non-interest expenses were $379.1 million, up 10.3% from the year-ago quarter. In the first quarter of 2026, the figure included $9.1 million in transaction expenses, $3.6 million in strategic restructuring costs and a $0.7-million benefit related to the FDIC special assessment. Excluding these items, total non-interest expenses increased $23.5 million. The rise was primarily driven by higher compensation and benefits costs. The efficiency ratio was 46.83% compared with 45.79% in the prior-year quarter. An increase in the efficiency ratio indicates a decline in profitability. Period-end loans and leases grew to $57.2 billion, up 1.2% from the prior quarter, with increases across commercial, commercial real estate and consumer categories. Total deposits inch up to $69 billion from $68.8 billion in the prior quarter, supported by growth in core deposits as a share of total funding. The loan-to-deposit ratio was 82.9%, slightly higher than the prior quarter’s 82.3%, as loan growth outpaced deposit inflows. Total borrowings increased to $5...

For the quarter ended March 2026, Webster Financial (WBS) reported revenue of $735.87 million, up 4.4% over the same period last year. EPS came in at $1.57, compared to $1.30 in the year-ago quarter. The reported revenue represents a surprise of -0.5% over the Zacks Consensus Estimate of $739.52 million. With the consensus EPS estimate being $1.53, the EPS surprise was +2.33%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Webster Financial performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Efficiency Ratio: 46.8% compared to the 49.5% average estimate based on six analysts. Net Interest Margin: 3.4% versus 3.4% estimated by six analysts on average. Net charge-offs/average loans and leases (annualized): 0.3% versus the five-analyst average estimate of 0.3%. Average balance - Total interest-earning assets: $78.34 billion compared to the $77.65 billion average estimate based on five analysts. Total nonperforming assets: $524.42 million versus the two-analyst average estimate of $495.88 million. Total Non-Interest Income: $101.46 million versus the six-analyst average estimate of $99.87 million. Deposit service fees: $41.52 million versus $40.38 million estimated by four analysts on average. Tax-equivalent Net Interest Income: $649.76 million versus $647.47 million estimated by four analysts on average. Net Interest Income: $634.4 million versus the four-analyst average estimate of $637.42 million. Wealth and investment services: $7.21 million versus the four-analyst average estimate of $7.76 million. Loan and lease related fees: $15.41 million versus the four-analyst average estimate of $18.1 million. Increase in cash surrender value of life insurance policies: $8.64 million compared to the $8.84 million average estimate based on three analysts. View all Key Company Metrics for Webster Financial here>>> Shares of Webster Financial have returned +5.8% ove...

STAMFORD, Conn., April 28, 2026--(BUSINESS WIRE)--Webster Financial Corporation ("Webster") (NYSE: WBS), the holding company for Webster Bank, N.A., today announced net income applicable to common stockholders of $239.3 million, or $1.50 per diluted share, for the quarter ended March 31, 2026, compared to $220.4 million, or $1.30 per diluted share, for the quarter ended March 31, 2025. First quarter 2026 results include Transaction expenses, strategic restructuring costs, and a benefit related to the FDIC special assessment. Excluding these items, adjusted earnings per diluted share would have been $1.571 for the quarter ended March 31, 2026. On February 3, 2026, Webster entered into a transaction agreement with Banco Santander, S.A. ("Banco Santander"), under which Banco Santander will acquire Webster in a cash and stock transaction (the "Transaction"). "Webster’s financial results reflect our colleagues’ commitment to execution amidst a dynamic economic environment," said John R. Ciulla, Chairman and Chief Executive Officer. "Our proposed transaction with Banco Santander will enhance our ability to support our clients and the communities we serve, while unlocking new opportunities for growth. We are making significant progress planning for the integration of two highly complementary banking organizations." Highlights for the first quarter of 2026: Revenue2 of $735.9 million Period end loans and leases balance of $57.2 billion, up $0.7 billion, or 1.2 percent from prior quarter Period end deposits balance of $69.0 billion, up $0.3 billion, or 0.4 percent, from prior quarter. Provision for credit losses of $54.0 million Return on average assets of 1.16 percent Return on average tangible common equity of 16.18 percent1 Net interest margin of 3.36 percent, up 1 basis point from prior quarter Common equity tier 1 ratio of 11.42 percent3 Efficiency ratio of 46.83 percent1 Tangible common equity ratio of 7.39 percent1 "Webster’s distinctive franchise continues to produce strong profitability, capital generation, and growth," said Neal Holland, Senior Executive Vice President and Chief Financial Officer. "Loans, deposits, and tangible book value per share exhibited solid growth both linked-quarter and year-over-year." Under the terms of the transaction agreement, Webster’s common stockholders will receive $48.75 in cash and 2.0548 Banco Santander ordinary shares,...

Eagle Bancorp (EGBN) came out with quarterly earnings of $0.48 per share, beating the Zacks Consensus Estimate of $0.28 per share. This compares to earnings of $0.06 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +71.43%. A quarter ago, it was expected that this bank holding company would post a loss of $0.12 per share when it actually produced earnings of $0.25, delivering a surprise of +308.33%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Eagle Bancorp, which belongs to the Zacks Banks - Northeast industry, posted revenues of $76.4 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 0.97%. This compares to year-ago revenues of $73.86 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Eagle Bancorp shares have added about 28.2% since the beginning of the year versus the S&P 500's gain of 3.2%. While Eagle Bancorp has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Eagle Bancorp was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (...

Valley National (VLY) came out with quarterly earnings of $0.29 per share, beating the Zacks Consensus Estimate of $0.27 per share. This compares to earnings of $0.18 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +7.41%. A quarter ago, it was expected that this holding company for Valley National Bank would post earnings of $0.29 per share when it actually produced earnings of $0.31, delivering a surprise of +6.9%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Valley National, which belongs to the Zacks Banks - Northeast industry, posted revenues of $541.64 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.70%. This compares to year-ago revenues of $479.67 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Valley National shares have added about 13.4% since the beginning of the year versus the S&P 500's gain of 4.3%. While Valley National has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Valley National was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the comp...

The market expects Webster Financial (WBS) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on April 28. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This holding company for Webster Bank is expected to post quarterly earnings of $1.54 per share in its upcoming report, which represents a year-over-year change of +18.5%. Revenues are expected to be $741.24 million, up 5.2% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.22% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predi...

STAMFORD, Conn., April 09, 2026--(BUSINESS WIRE)--Webster Financial Corporation (NYSE: WBS, "the company"), the holding company for Webster Bank, N.A., today announced it will release its first quarter 2026 earnings after the close of U.S. markets on April 28, 2026. The company will not host an earnings call or provide an accompanying presentation due to its pending transaction with Banco Santander, S.A. About Webster Financial Corporation: Webster Financial Corporation ("Webster") (NYSE:WBS) is the holding company for Webster Bank, N.A. ("Webster Bank"). Founded in 1935 and headquartered in Stamford, CT, Webster is a values-driven organization with more than $80 billion in total assets. Webster Bank is a commercial bank that provides a wide range of financial products and services to businesses, individuals, and families across three differentiated lines of business: Commercial Banking, Healthcare Financial Services, and Consumer Banking. While its core footprint spans the Northeast from the New York metropolitan area to Rhode Island and Massachusetts, certain businesses operate in extended geographies. Webster Bank is a member of the FDIC and an equal housing lender. For more information about Webster, including past press releases and the latest annual report, visit the Webster website at www.websterbank.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20260409511486/en/ Contacts Media Contact: Alice Ferreira, 203-578-2610 [email protected] Investor Contact: Emlen Harmon, 212-309-7646 [email protected]

In recent weeks, Webster Financial reported another solid quarter, beating earnings expectations and raising its dividend, supported by a conservative deposit base and expanding specialty lending. At the same time, analysts are highlighting a projected 8.2% net interest income decline and slower revenue growth, creating a tension between operational strength and tempered growth expectations. Now we’ll examine how Webster’s stronger-than-expected quarter and dividend increase interact with concerns over slower revenue growth in its investment narrative. Find 51 companies with promising cash flow potential yet trading below their fair value. To own Webster today, you need to be comfortable owning a well capitalized regional bank that is now in the process of being acquired. The recent earnings beat and dividend increase reinforce near term strength, but the biggest swing factor is the US$12.2 billion Santander deal closing as planned, while the key risk remains pressure on net interest income and profitability from slower growth and margin compression. So far, this quarter’s results do not materially change that balance. The most relevant recent announcement is Santander’s agreement to acquire Webster for a mix of cash and shares worth US$48.75 per Webster share. This takes center stage ahead of prior catalysts like fee income growth from HSA Bank or the Marathon joint venture, since regulatory approvals and integration outcomes are now likely to shape how much value existing shareholders ultimately realize from Webster’s underlying strengths. Yet behind the solid quarter and the agreed takeover terms, investors should be aware of Webster’s concentrated exposure to commercial real estate, including... Read the full narrative on Webster Financial (it's free!) Webster Financial's narrative projects $3.4 billion revenue and $1.2 billion earnings by 2028. This requires 10.8% yearly revenue growth and a $369.4 million earnings increase from $830.6 million today. Uncover how Webster Financial's forecasts yield a $74.77 fair value, a 3% upside to its current price. Three fair value estimates from the Simply Wall St Community span a wide range, from US$38 up to about US$144 per share, showing just how far apart individual views can be. When you set those opinions against concerns about an expected decline in net interest income and slower revenue growth, it underlines...

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Banco Santander is expanding its U.S. presence through the acquisition of Webster Financial. The bank is also set to complete a major takeover of TSB in the UK. Together, these moves signal a push to reshape its international footprint in two key banking markets. Banco Santander (BME:SAN), trading at around €10.66, is making sizable moves in both the U.S. and UK through these acquisitions. The share price sits alongside a 1 year return of 97.6%, a 3 year return of 238.8%, and a 5 year performance of 341.0%. This places recent corporate activity under a brighter spotlight for existing and potential shareholders. For you as an investor, a key consideration is how the integration of Webster Financial and TSB might affect Banco Santander's earnings mix, capital allocation, and risk profile over time. These deals are likely to influence where the bank earns its money and how it competes in mature markets such as the U.S. and UK, which many investors watch closely when assessing a large cross border bank. Stay updated on the most important news stories for Banco Santander by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Banco Santander. How Banco Santander stacks up against its biggest competitors The Webster Financial and TSB deals push Banco Santander further into two mature, highly competitive markets where players such as JPMorgan Chase, Bank of America, HSBC and Lloyds Banking Group already have scale. For you, the key question is whether combining these acquisitions with Santander's existing U.S. and UK operations can create a more balanced earnings mix and deeper local funding bases, while still maintaining the capital strength that underpins its global retail and commercial banking model. These moves align with the existing narrative of Santander as a diversified multinational bank that relies on scale, digital platforms and a broad client base to support more stable earnings over time. By adding a community-focused lender in the northeastern U.S. and a high-street UK bank, Santander is leaning further into the theme of cross border connectivity between Europe and the Americas, while continuing to build out the retail, payments and fee-based businesses th...