Webster Financial Corporation (NYSE:WBS)

Q3 2022 Earnings Conference Call

October 20, 2022 9:00 AM ET

Company Participants

Emlen Harmon - Investor Relations

John Ciulla - Chief Executive Officer

Glenn MacInnes - Executive Vice President, Chief Financial Officer

Conference Call Participants

Chris McGratty - Keefe, Bruyette, & Woods

Mark Fitzgibbon - Piper Sandler

Casey Haire - Jefferies

Steven Alexopoulos - JPMorgan

Matthew Breese - Stephens Inc.

Timur Braziler - Wells Fargo Securities

Laurie Hunsicker - Compass Point

Presentation

Operator

Good morning. Welcome to the Webster Financial Corporation Third Quarter 2022 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, let me 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 accompanying management's remarks can be found on the company's Investor Relations website at investors.websterbank.com.

I'll now turn the call over to Webster Financial’s CEO, John Ciulla.

John Ciulla

Thanks, Emlen. Good morning, everyone, and thank you for joining us for our third quarter earnings call. I'm going to provide remarks of financial performance, strategic execution and merger integration before turning over to Glenn to review our financials in more detail. The third quarter results announced today reflect the strong progress we've made in creating a high-performing and differentiated company through solid execution on integration activities and a laser focus on delivering for our clients.

We are one unified Webster growing across diverse set of business lines, realizing revenue and cost synergies, supporting the communities in an expanded footprint, and delivering financial results that meet or exceed the target metrics we set forth when we announced the [indiscernible] 18 months ago.

Our financial performance this quarter was stronger than last. On an adjusted basis, we generated diluted EPS of $1.46 versus $1.29 last quarter. Net income available to common shareholders $257 million versus $229 million [Technical Difficulty] quarter and PPNR was up $371 million from $316 million. The potential of the company we have created is evident in our results. On an adjusted basis, we produced a return on assets in excess of 1.5% and a return on tangible common equity of nearly 21%. Our efficiency ratio was 41% in the quarter and over 400 basis point improvement. These results exceeded the full-year 2022 performance we provided when we first announced our merger in of April 2021.