Webster Financial Q1 Profit Tops Estimates; Webster Financial & Sterling Bancorp To Combine

(RTTNews) - Webster Financial Corp. (WBS) reported first quarter earnings applicable to common shareholders of $105.5 million, or $1.17 per share, compared to $36.0 million, or $0.39 per share, prior year. Earnings per share would have been $1.25 for the quarter ended March 31, 2021, adjusting for charges related to strategic optimization initiatives. On average, 12 analysts polled by Thomson Reuters expected the company to report profit per share of $0.92, for the quarter. Analysts' estimates typically exclude special items.

For the first quarter of 2021, revenue was $300.5 million. Analysts expected revenue of $230.77 million, for the quarter.

Separately, Webster Financial Corporation and Sterling Bancorp (STL) said the two companies will combine in an all-stock merger of equals transaction with a total market value of approximately $10.3 billion. Sterling will merge into Webster, and Sterling's shareholders will receive a fixed exchange ratio of 0.463 of a Webster share for each share of Sterling stock they own.

Webster shareholders will own approximately 50.4% of the combined company, and Sterling shareholders will own approximately 49.6%. The combined company will retain the Webster name.

John Ciulla, Chairman, President & CEO of Webster, will serve as President & CEO of the combined company until 24 months after closing, at which time he will become Chairman, President & CEO. Jack Kopnisky, President & CEO of Sterling, will serve as Executive Chairman of the combined company.