Strong Financial Performance
Webster Financial Corporation reported a return on tangible common equity of 18%, ROA of nearly 1.3%, and growth in both loans and deposits of over 2% linked quarter. Overall revenue grew 2.3% over the prior quarter.
Capital Generation and Share Repurchase
Webster repurchased 2.2 million shares, or 1.4% of the outstanding shares at the end of Q2. Tangible book value grew 3.7% over the prior quarter.
Positive Asset Quality Trends
Criticized loans were down over 7% with non-accrual loans essentially flat. Charge-offs of 28 basis points remain near the bottom of the normalized range.
Growth in HSA Bank Opportunities
New legislation is expected to increase the addressable market for HSA accounts, potentially driving $1 billion to $2.5 billion in incremental deposit growth over the next five years.
Successful Start to Marathon Joint Venture
The private credit joint venture with Marathon Asset Management is now fully operational with positive early returns and significant pipeline opportunities.