Call Start: 09:00 January 1, 0000 10:01 AM ET
Webster Financial Corporation (NYSE:WBS)
Q2 2023 Earnings Conference Call
July 20, 2023, 09:00 ET
Company Participants
Emlen Harmon - Director, IR
John Ciulla - President, CEO & Director
Glenn MacInnes - EVP & CFO
Conference Call Participants
Christopher McGratty - KBW
Casey Haire - Jefferies
Matthew Breese - Stephens Inc.
Jared Shaw - Wells Fargo Securities
Manan Gosalia - Morgan Stanley
Steven Alexopoulos - JPMorgan Chase & Co.
Daniel Tamayo - Raymond James & Associates
Mark Fitzgibbon - Piper Sandler & Co.
Brody Preston - UBS
Bernard Von Gizycki - Deutsche Bank
Operator
Good morning, and welcome to the Webster Financial Corporation Second Quarter 2023 Earnings Call. Please note this event is being recorded. I would now like to introduce Webster's Director of Investor Relations, Emlen Harmon to introduce the call. Mr. Harmon, please go ahead.
Emlen Harmon
Good morning. Before we begin our remarks, I want to remind you that the comments made by management may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to the safe harbor rules. Please review the forward-looking disclaimer and safe harbor language in today's press release and presentation for more information about risks and uncertainties, which may affect us. The presentation and accompanying management's remarks can be found on the company's Investor Relations website at investors.websterbank.com.
I'll now turn it over to Webster Financial CEO, John Ciulla.
John Ciulla
Thanks, Emlen. Good morning, and welcome to Webster Financial Corporation's Second Quarter 2023 Earnings Call. We appreciate you joining us this morning. I'll provide remarks on our high-level results and operations before turning it over to Glenn to cover our financial results in greater detail. Webster's results in the quarter illustrate the competitive advantages of our funding profile while we experienced some temporary NIM headwinds as we pulled liquidity onto our balance sheet early in the quarter, overall, our diverse and distinctive deposit gathering channels provided steady funding as we grew deposits significantly and increased our off-balance sheet liquidity. Glenn will provide more specific detail on balance sheet trends in his remarks.
In the face of industry challenges, we are proud of our financial performance in the quarter. On an adjusted basis, we generated EPS of $1.50 while we saw a modest 1.9% quarter-over-quarter decline in net interest income, we anticipate a positive trajectory through the remainder of the year. Our other income statement lines exhibited positive trends as we grew noninterest income and maintained flat expenses. Despite maintaining a higher-than-normal liquidity position, we generated an adjusted ROA of just under 1.4% and an adjusted return on tangible common equity of 20.4%, we grew our deposits by over 6% in the quarter.