Inside a $75 Million Regional Bank Bet With $732 Million in Quarterly Revenue
Key Points
New York City-based 140 Summer Partners bought 1.27 million shares of Webster Financial Corporation in the third quarter.
The position was worth about $75.46 million as of September 30.
The new holding now ranks as the fund’s fifth-largest position.
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New York City-based 140 Summer Partners established a new position in Webster Financial Corporation (NYSE:WBS), acquiring 1.27 million shares worth an estimated $75.46 million, according to an SEC filing on November 13.
What Happened
According to a filing with the Securities and Exchange Commission (SEC) released on November 13, 140 Summer Partners LP initiated a new stake in Webster Financial Corporation (NYSE:WBS) totaling 1.27 million shares. The position, valued at $75.46 million as of September 30, accounted for 6.55% of the fund’s reportable U.S. equity assets, bringing total disclosed holdings to 21 positions.
What Else to Know
Top holdings after the filing:
- NYSE:COF: $112.85 million (10.0% of AUM)
- NYSE:MTZ: $81.51 million (7.2% of AUM)
- NYSE:CRH: $79.46 million (7.0% of AUM)
- NYSE:AER: $78.38 million (6.9% of AUM)
- NYSE:WBS: $75.46 million (6.7% of AUM)
As of Monday, WBS shares were priced at $64.15, up close to 17% over the past year and outperforming the S&P 500, which is up about 15.5% in the same period.
Company Overview
| Metric | Value |
|---|---|
| Market Capitalization | $10.66 billion |
| Revenue (TTM) | $2.81 billion |
| Net Income (TTM) | $924.75 million |
| Price (as of Monday) | $64.15 |
Company Snapshot
- Webster Financial offers commercial banking, health savings accounts, and retail banking services, including lending, deposit, cash management, and wealth management solutions.
- The company provides services that generate revenue through net interest income from lending and deposits, and also offers fee-based services such as asset management, insurance, and payment solutions.
- It serves individuals, families, and businesses across the United States, providing commercial banking and health savings account services.
Webster Financial Corporation is a leading regional financial services provider with a diversified business model spanning commercial banking, health savings accounts, and retail banking. The company leverages its multi-segment structure to serve a broad customer base and drive stable revenue streams. Its scale and integrated service offerings position it competitively within the U.S. regional banking sector.
Foolish Take
In a market crowded with high-multiple narratives, this move leans into something far less flashy and arguably more durable: a 90-year-old regional bank posting record profitability while steadily growing its core franchise.
Webster just delivered third-quarter earnings of $1.54 per share on revenue of $732.6 million, with returns on tangible common equity near 18% and an efficiency ratio of about 46%. Loans rose 2.6% sequentially, deposits climbed almost 3%, and capital ratios stayed comfortably above regulatory minimums, all while the bank repurchased 2.2 million shares. More broadly, this portfolio’s largest positions skew toward financials, infrastructure, and cash-generative businesses, not speculative growth. Webster fits that profile cleanly. The stock is up about 17% over the past year, roughly in line with the broader market, yet earnings power and book value continue to climb underneath the surface. That’s all what an investor might want to see in a new stock pick.
Glossary
Position: The amount of a particular security or asset held by an investor or fund.
Stake: The ownership interest or investment held in a company, often expressed as a number of shares or percentage.
Assets Under Management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
13F: A quarterly report filed by institutional investment managers to disclose their U.S. equity holdings.
Reportable U.S. equity assets: U.S. stock holdings that must be disclosed in regulatory filings, such as the 13F report.
Commercial banking: Banking services for businesses, including loans, deposit accounts, and cash management.
Health savings accounts (HSAs): Tax-advantaged accounts used to save for medical expenses.
Net interest income: The difference between interest earned on loans and interest paid on deposits.
Fee-based services: Financial services that generate revenue through client fees rather than interest, such as asset management or payment processing.
Regional banking sector: Banks that primarily operate in specific geographic areas, serving local communities and businesses.
Diversified business model: A strategy where a company operates in multiple business areas to reduce risk and stabilize earnings.
TTM: The 12-month period ending with the most recent quarterly report.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool recommends AerCap, Capital One Financial, and MasTec and recommends the following options: long January 2027 $60 calls on AerCap. The Motley Fool has a disclosure policy.
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