What does Webster Financial do and what are its main business segments?

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What guidance did Webster Financial's management provide for the next earnings period?

What is the revenue and EPS growth rate for Webster Financial year over year?

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Did Webster Financial beat or miss consensus estimates last quarter?

What is Webster Financial's latest dividend and current dividend yield?

- **Record Performance**: Q3 revenue grew 2.3% QoQ, driven by $1.4 billion in loan growth and 2.2% deposit expansion.
- **Strategic Wins**: Marathon JV pipeline active, HSA Bank's addressable market expands by 7 million customers.
- **Capital Strength**: 18% ROTCE, $261 million net income, and 11.4% CET1 ratio support share buybacks.
- **Risk Management**: Criticized loans down 7%, charge-offs at 28bps, and NDFI portfolio with no historical losses.
- **Growth Catalysts**: interSYNC deposit growth, fee income diversification, and regulatory tailwinds.
- **Q4 Outlook**: Flat NII, 1% loan growth ex-seasonality, and cautious capital allocation.


**【CEO Summary Section】**
- Webster Financial reported strong third-quarter results with a return on tangible common equity of 18% and revenue growth of 2.3% quarter-over-quarter.
- Loan growth of $1.4 billion (2.6%) was driven by diverse categories, including commercial real estate, while deposits grew 2.2% due to strong performance in health care and commercial segments.
- Capital generation remained robust, with 2.2 million shares repurchased and tangible book value increasing 3.4% quarter-over-quarter.
- Asset quality improved, with criticized loans down 7% and charge-offs at 28 basis points, near the lower end of the company's normalized range.
- Management emphasized strategic advantages such as diverse deposit generation, regulatory tailwinds, and a focus on fee income growth.

**【COO Operational Update】**
- Commercial lending pipeline activity was strong, with growth across all major lending categories, including a 20% increase in loan-related fees.
- Deposit growth was driven by Ametros (record new account growth) and interSYNC (10% annualized growth), offsetting seasonal public funds inflows.
- The private credit joint venture with Marathon Asset Management is performing well, with a pipeline of potential lending opportunities and alignment on risk appetite.
- HSA Bank's addressable market expanded by 7 million customers due to new legislation, with potential incremental deposit growth of $1 billion to $2.5 billion over five years.

**【CFO Financial Commentary】**
- GAAP net income was $261 million, up from $259 million in the prior quarter, with EPS of $1.54 reflecting strong profitability.
- Net interest income increased $10 million due to balance sheet growth, though net interest margin (NIM) declined 4 basis points to 3.4% due to spread compression.
- Noninterest income grew $6 million quarter-over-quarter, driven by swap fee income and a one-time legal settlement.
- Operating expenses increased $11 million due to higher incentive accruals, but remained well-controlled.
- The company maintained excess capital, with tangible book value per share rising to $36.42.
- Q4 outlook includes flat net interest income, seasonal deposit outflows, and higher debt costs due to subordinated note redemptions.

**【Q&A Highlights】**
- **Marathon JV Success**: Early pipeline activity and alignment with Marathon on risk management suggest long-term growth opportunities in lending and fee income.
- **Deposit Strategy**: Preference for low-cost, high-fee deposits (e.g., interSYNC) over brokered deposits, with brokered balances expected to remain below 4%.
- **NDFI Exposure**: $6 billion in non-depository financial institution loans, 90% in low-risk fund banking and lender finance, with no historical losses.
- **M&A Outlook**: Unlikely to pursue whole-bank acquisitions, focusing instead on smaller health care-related deals.
- **Loan Growth**: Q4 pipeline remains solid, but growth may moderate due to seasonal prepayments and higher payoff activity.
- **Credit Quality**: Stable nonperforming loans (NPLs) at 0.45%, with charge-offs concentrated in health care and office CRE.
- **NIM Compression**: Offset by loan growth and fee income, but NIM expected to remain under pressure in 2026.


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