Webster Financial Corporation announced net income applicable to common stockholders of $220.4 million, or $1.30 per diluted share, for the first quarter ended March 31, 2025. This represents an increase from $210.1 million, or $1.23 per diluted share, reported for the same period in 2024. The company's total assets exceeded $80 billion.
Net interest income for the quarter was $617.6 million, compared to $637.7 million in Q1 2024, with a net interest margin of 3.39%. The provision for credit losses increased significantly to $54.0 million from $34.0 million in Q1 2024. This increase was primarily driven by a prudent adjustment to the CECL modeling, raising the recession case probability to 30% and adding approximately $20 million to the provision.
Loans and leases grew to $53.1 billion, up from $51.1 billion in the prior year, while total deposits increased to $54.6 billion from $52.3 billion. Commercial Banking reported $40.8 billion in loans and $16.6 billion in deposits, with pre-tax, pre-provision net revenue of $241.5 million. Healthcare Financial Services deposits grew 8.1% year-over-year to $10.2 billion, contributing $70.0 million in pre-tax net revenue.
CEO John R. Ciulla stated that Webster consistently executes through various operating environments, generating growth in loans and deposits across its businesses. CFO Neal Holland noted the increase in the allowance for credit losses on loans and leases to prepare for a wider range of economic scenarios, despite solid fundamental business strength.
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