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Here's What Key Metrics Tell Us About Webster Financial (WBS) Q3 Earnings

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Webster Financial (WBS - Free Report) reported $732.57 million in revenue for the quarter ended September 2025, representing a year-over-year increase of 13.1%. EPS of $1.54 for the same period compares to $1.34 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $724.91 million, representing a surprise of +1.06%. The company delivered an EPS surprise of +1.32%, with the consensus EPS estimate being $1.52.

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.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

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: 45.8% versus the six-analyst average estimate of 48%.
  • Net Interest Margin: 3.4% versus the six-analyst average estimate of 3.4%.
  • Net charge-offs/average loans and leases (annualized): 0.3% versus 0.3% estimated by five analysts on average.
  • Average balance - Total interest-earning assets: $75.4 billion versus $74.37 billion estimated by four analysts on average.
  • Total nonperforming loans and leases: $543.93 million versus the two-analyst average estimate of $530.45 million.
  • Total Non-Interest Income: $100.91 million versus the six-analyst average estimate of $96.02 million.
  • Net Interest Income: $631.67 million versus $627.87 million estimated by five analysts on average.
  • Deposit service fees: $39.58 million versus the four-analyst average estimate of $41.17 million.
  • Loan and lease related fees: $16.4 million versus $18.01 million estimated by four analysts on average.
  • Wealth and investment services: $7.64 million versus $8.24 million estimated by four analysts on average.
  • Non-interest income- Other income: $29.75 million versus the three-analyst average estimate of $19.87 million.
  • Tax-equivalent Net Interest Income: $645.93 million compared to the $635.99 million average estimate based on two analysts.

View all Key Company Metrics for Webster Financial here>>>

Shares of Webster Financial have returned -13.2% over the past month versus the Zacks S&P 500 composite's +0.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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