STAMFORD, Conn., July 17, 2025 - Webster Financial Corporation (“Webster”) (NYSE: WBS), the holding company for Webster Bank, N.A., today announced net income applicable to common stockholders of $251.7 million, or $1.52 per diluted share, for the quarter ended June 30, 2025, compared to $175.5 million, or $1.03 per diluted share, for the quarter ended June 30, 2024.
“Webster produced impressive financial and strategic results this quarter,” said John R. Ciulla, chairman and chief executive officer. “These accomplishments bode well for Webster’s future success, as we realize exciting new opportunities to grow our business.”
Highlights for the second quarter of 2025:
•Revenue of $715.8 million.
•Period end loans and leases balance of $53.7 billion, up $0.6 billion, or 1.2 percent from prior quarter.
•Period end deposits balance of $66.3 billion, up $0.7 billion, or 1.1 percent, from prior quarter.
•Provision for credit losses of $46.5 million.
•Return on average assets of 1.29 percent.
•Return on average tangible common equity of 17.96 percent1.
•Net interest margin of 3.44 percent, down 4 basis points from prior quarter.
•Common equity tier 1 ratio of 11.33 percent2.
•Efficiency ratio of 45.40 percent1.
•Tangible common equity ratio of 7.46 percent1.
“In the second quarter, Webster generated solid growth and returns, while at the same time maintaining our strong operating position,” said Neal Holland, senior executive vice president and chief financial officer. “Our asset quality metrics improved, we returned capital to shareholders, and continue to invest for future growth.”
1 See “Non-GAAP to GAAP Reconciliations” section beginning on page 19.
2 Presented as preliminary for June 30, 2025.
Consolidated financial performance:
Quarterly net interest income compared to the second quarter of 2024:
•Net interest income was $621.2 million, compared to $572.3 million.
•Net interest margin1 was 3.44 percent, compared to 3.39 percent. The yield on interest-earning assets decreased by 21 basis points, and the cost of deposits and interest-bearing liabilities decreased by 31 basis points.
•Average interest-earning assets totaled $74.0 billion, an increase of $4.4 billion, or 6.4 percent.
•Average loans and leases totaled $53.3 billion, an increase of $1.8 billion, or 3.6 percent.
•Average deposits totaled $66.0 billion, an increase of $4.2 billion, or 6.9 percent.
Quarterly provision for credit losses:
•The provision for credit losses was $46.5 million, compared to $77.5 million in the prior quarter, and $59.0 million a year ago.
•Net charge-offs were $36.4 million, compared to $55.0 million in the prior quarter, and $33.1 million a year ago. The ratio of net charge-offs to average loans and leases was 0.27 percent, compared to 0.42 percent in the prior quarter, and 0.26 percent a year ago.
•The allowance for credit losses on loans and leases represented 1.35 percent of total loans and leases, compared to 1.34 percent at March 31, 2025, and 1.30 percent at June 30, 2024.
•The allowance for credit losses on loans and leases represented 135 percent of non-performing loans and leases, compared to 126 percent at March 31, 2025, and 181 percent at June 30, 2024.
Quarterly non-interest income compared to the second quarter of 2024:
•Total non-interest income was $94.7 million, compared to $42.3 million, an increase of $52.4 million. In the second quarter of 2024, total non-interest income included losses on sale of investment securities of $49.9 million. Excluding this item, total non-interest income increased $2.5 million. The increase is primarily driven by increased bank owned life insurance, direct investment gains, and Healthcare Financial Services income, partially offset by lower loan and lease related fees.
1 As of the first quarter of 2025, Webster changed the methodology used to annualize net interest income in its quarterly and year to date net interest margin calculation. Net interest margin for the prior periods has been recast.
2
Quarterly non-interest expense compared to the second quarter of 2024:
•Total non-interest expense was $345.7 million, compared to $326.0 million, an increase of $19.7 million. The increase is primarily driven by investments in human capital and risk management infrastructure.
Quarterly income taxes compared to the second quarter of 2024:
•Income tax expense was $64.8 million, compared to $47.9 million, and the effective tax rate was 20.0 percent, compared to 20.9 percent. The lower effective tax rate in the current quarter reflects the recognition of a $3.9 million discrete benefit, compared to $0.3 million a year ago.
Investment securities:
•Total investment securities, net, were $17.8 billion, compared to $17.7 billion at March 31, 2025, and $16.4 billion at June 30, 2024. The carrying value of the available-for-sale portfolio included $568.3 million of net unrealized losses, compared to $580.4 million at March 31, 2025, and $772.2 million at June 30, 2024. The carrying value of the held-to-maturity portfolio does not reflect $901.6 million of net unrealized losses, compared to $893.3 million at March 31, 2025, and $964.5 million at June 30, 2024.
Loans and leases:
•Total loans and leases were $53.7 billion, compared to $53.1 billion at March 31, 2025, and $51.6 billion at June 30, 2024. Compared to March 31, 2025, commercial loans and leases increased by $412.3 million, commercial real estate loans decreased by $24.4 million, residential mortgages increased by $209.4 million, and consumer loans increased by $18.4 million. Compared to June 30, 2024, commercial loans and leases increased by $1.8 billion, commercial real estate loans decreased by $919.0 million, residential mortgages increased by $1.0 billion, and consumer loans increased by $168.7 million.
•Loan originations for the portfolio were $3.8 billion, compared to $2.7 billion in the prior quarter, and $3.0 billion a year ago.
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Asset quality:
•Total non-performing loans and leases were $534.5 million, compared to $564.4 million at March 31, 2025, and $368.8 million at June 30, 2024. The ratio of total non-performing loans and leases to total loans and leases was 1.00 percent, compared to 1.06 percent at March 31, 2025, and 0.72 percent at June 30, 2024.
•Past due loans and leases were $54.8 million, compared to $87.2 million at March 31, 2025, and $166.3 million at June 30, 2024. The decrease from prior quarter is primarily driven by commercial real estate, commercial non-mortgage, and residential mortgages.
Deposits and borrowings:
•Total deposits were $66.3 billion, compared to $65.6 billion at March 31, 2025, and $62.3 billion at June 30, 2024. The ratio of core deposits to total deposits1 was 88.1 percent, compared to 88.5 percent at March 31, 2025, and 87.5 percent at June 30, 2024. The loan to deposit ratio was 80.9 percent, compared to 80.9 percent at March 31, 2025, and 82.8 percent at June 30, 2024.
•Total borrowings were $4.6 billion, compared to $3.9 billion at March 31, 2025, and $4.0 billion at June 30, 2024.
Capital:
•The return on average common stockholders’ equity and the return on average tangible common stockholders’ equity1 were 11.31 percent and 17.96 percent, respectively, compared to 9.94 percent and 15.93 percent, respectively, in the prior quarter, and 8.40 percent and 14.17 percent, respectively, a year ago.
•The tangible equity1 and tangible common equity1 ratios were 7.82 percent and 7.46 percent, respectively, compared to 7.80 percent and 7.43 percent, respectively, at March 31, 2025, and 7.56 percent and 7.18 percent, respectively, at June 30, 2024.
•The common equity tier 12 ratio was 11.33 percent, compared to 11.25 percent at March 31, 2025, and 10.59 percent at June 30, 2024.
•Book value per common share and tangible book value per common share1 were $54.19 and $35.13, respectively, compared to $52.91 and $33.97, respectively, at March 31, 2025, and $49.74 and $30.82, respectively, at June 30, 2024.
1 See “Non-GAAP to GAAP Reconciliations” section beginning on page 19.
2 Presented as preliminary for June 30, 2025, and actual for the remaining periods.
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Reportable segments:
Commercial Banking
Webster’s Commercial Banking segment delivers financial solutions both nationally and regionally to a wide range of companies, investors, government entities, and other public and private institutions. Commercial Banking helps its clients achieve their business and financial goals with expertise in Commercial & Institutional Lending, Commercial Real Estate, Capital Markets, Capital Finance, and Treasury Management. Its Private Banking team also pairs holistic wealth solutions, including tailored lending, with commercial banking services. At June 30, 2025, Commercial Banking had $41.2 billion in loans and leases and $16.2 billion in deposits, as well as a combined $3.1 billion in assets under administration (“AUA”) and management (“AUM”).
Commercial Banking Operating Results:
Three months ended June 30,
Percent
(In thousands)
2025
2024
(Unfavorable)
Net interest income
$318,518
$337,588
(5.6)
%
Non-interest income
30,628
34,510
(11.2)
Operating revenue
349,146
372,098
(6.2)
Non-interest expense
108,372
104,588
(3.6)
Pre-tax, pre-provision net revenue
$240,774
$267,510
(10.0)
June 30,
Percent
(In millions)
2025
2024
Increase
Loans and leases
$41,198
$40,331
2.1
%
Deposits
16,225
15,464
4.9
AUA / AUM (off balance sheet)
3,070
2,948
4.2
Pre-tax, pre-provision net revenue decreased $26.7 million, to $240.8 million, in the quarter as compared to the prior year. Net interest income decreased $19.0 million, to $318.5 million, primarily driven by lower spreads on loans and leases, partially offset by higher loan balances and lower deposit costs. Non-interest income decreased $3.9 million, to $30.6 million, primarily driven by lower factoring, prepayment, and syndication fees, and lower direct investment gains. Non-interest expense increased $3.8 million, to $108.4 million, primarily driven by higher foreclosed property and loan workout expenses and increased investments in human capital, operational process improvements, and technology.
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Healthcare Financial Services
Webster’s Healthcare Financial Services segment includes HSA Bank and Ametros. HSA Bank is one the country’s largest providers of employee benefits solutions, including being one of the leading bank administrators of health savings accounts, emergency savings accounts, and flexible spending accounts administration services in 50 states. Ametros, the nation’s largest professional administrator of medical insurance claim settlements, helps individuals manage their ongoing medical care through their CareGuard service and proprietary technology platform. At June 30, 2025, Healthcare Financial Services had $15.9 billion in total footings comprising $10.2 billion in deposits and $5.8 billion in AUA through linked investment accounts.
Healthcare Financial Services Operating Results:
Percent
Three months ended June 30,
Favorable/
(In thousands)
2025
2024
(Unfavorable)
Net interest income
$97,625
$91,664
6.5
%
Non-interest income
28,687
27,465
4.4
Operating revenue
126,312
119,129
6.0
Non-interest expense
55,453
51,267
(8.2)
Pre-tax net revenue
$70,859
$67,862
4.4
June 30,
Percent
(Dollars in millions)
2025
2024
Increase
Number of accounts (thousands)
3,472
3,337
4.0
%
Deposits
$10,180
$9,392
8.4
Linked investment accounts (off balance sheet)
5,751
5,522
4.2
Total footings
$15,931
$14,914
6.8
Pre-tax net revenue increased $3.0 million, to $70.9 million, in the quarter as compared to the prior year. Net interest income increased $6.0 million, to $97.6 million, primarily driven by higher deposit balances, partially offset by lower deposit spreads. Non-interest income increased $1.2 million, to $28.7 million, primarily driven by higher interchange fees and medical fees. Non-interest expense increased $4.2 million, to $55.5 million, primarily driven by higher compensation and benefits costs and a one-time lease termination benefit in the second quarter of 2024.
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Consumer Banking
Webster’s Consumer Banking segment delivers customized financial solutions for individuals and families, private clients, and small business owners across 196 banking centers throughout the Northeast. Consumer Banking offers a full suite of deposit, lending, treasury management, and wealth management solutions delivered by experienced relationship managers and financial advisors. Consumer Banking also provides a fully digital banking experience through its mobile banking apps and BrioDirect. At June 30, 2025, Consumer Banking had $12.5 billion in loans and $27.8 billion in deposits, as well as $7.5 billion in AUA.
Consumer Banking Operating Results:
Percent
Three months ended June 30,
Favorable/
(In thousands)
2025
2024
(Unfavorable)
Net interest income
$212,672
$202,679
4.9
%
Non-interest income
24,591
24,392
0.8
Operating revenue
237,263
227,071
4.5
Non-interest expense
123,044
115,905
(6.2)
Pre-tax, pre-provision net revenue
$114,219
$111,166
2.7
Percent
June 30,
Increase/
(In millions)
2025
2024
(Decrease)
Loans
$12,472
$11,239
11.0
%
Deposits
27,790
27,108
2.5
AUA (off balance sheet)
7,546
7,976
(5.4)
Pre-tax, pre-provision net revenue increased $3.1 million, to $114.2 million, in the quarter as compared to the prior year. Net interest income increased $10.0 million, to $212.7 million, primarily driven by higher average loan and deposit balances coupled with a higher interest rate spread on loans, partially offset by a lower interest rate spread on deposits. Non-interest income increased $0.2 million, to $24.6 million, primarily driven by higher deposit and loan servicing income, partially offset by lower investment services income. Non-interest expense increased $7.1 million, to $123.0 million, primarily driven by increased investments in technology, employee-related expenses, and outside professional services, partially offset by lower operational support expenses and costs related to debit card processing.
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***
Webster Financial Corporation (“Webster”) (NYSE:WBS) is the holding company for Webster Bank, N.A. (“Webster Bank”). Headquartered in Stamford, CT, Webster is a values-driven organization with approximately $82 billion in total consolidated assets. Webster Bank is a commercial bank that provides a wide range of financial products and services to businesses, individuals, and families across three differentiated lines of business: Commercial Banking, Healthcare Financial Services, and Consumer Banking. While its core footprint spans the Northeast from the New York metropolitan area to Rhode Island and Massachusetts, certain businesses operate in extended geographies. Webster Bank is a member of the FDIC and an equal housing lender. For more information about Webster, including past press releases and the latest annual report, visit the Webster website at www.websterbank.com.
Conference Call
A conference call covering Webster’s second quarter 2025 earnings announcement will be held today, Thursday, July 17, 2025, at 9:00 a.m. Eastern Time. To listen to the live call, please dial 888-330-2446, or 1-240-789-2732 for international callers. The passcode is 8607257. The webcast, along with related slides, will be available via Webster’s Investor Relations website at investors.websterbank.com. A replay of the conference call will be available for one week via the website listed above, beginning at approximately 12:00 noon (Eastern Time) on July 17, 2025. To access the replay, dial 800-770-2030, or 1-609-800-9909 for international callers. The replay conference ID number is 8607257.
Media Contact
Alice Ferreira, 203-578-2610
acferreira@websterbank.com
Investor Contact
Emlen Harmon, 212-309-7646
eharmon@websterbank.com
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Forward-Looking Statements
This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “believes,” “anticipates,” “expects,” “intends,” “outlook,” “target,” “continue,” “remain,” “will,” “should,” “may,” “plans,” “estimates,” and similar references to future periods. However, these words are not the exclusive means of identifying such statements. Examples of forward-looking statements include but are not limited to: projections of revenues, expenses, income or loss, earnings or loss per share, and other financial items; statements of plans, objectives, and expectations of Webster or its management or Board of Directors; statements of future economic performance; and statements of assumptions underlying such statements. Forward-looking statements are based on Webster’s current expectations and assumptions regarding its business, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict, and in many cases, are beyond Webster's control. Webster’s actual results may differ materially from those contemplated by the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance. Factors that could cause Webster’s actual results to differ from those discussed in any forward-looking statements include, but are not limited to: Webster’s ability to successfully execute its business plan and strategic initiatives, and manage any risks or uncertainties; continued regulatory changes or other risk mitigation efforts taken by government agencies in response to the risk to safety and soundness in the banking industry; volatility in Webster’s stock price due to investor sentiment and perception of the banking industry; local, regional, national, and international economic conditions or macroeconomic instability (including any economic slowdown or recession, inflation, monetary fluctuation, tariff increases, interest rate changes, credit loss trends, unemployment, changes in housing or securities markets, or other factors) and the impact of the same on Webster or its customers; volatility, disruption, or uncertainty in national and international financial markets, including as a result of geopolitical developments; the impact of unrealized losses in Webster’s financial instruments, particularly in Webster’s available-for-sale securities portfolio; changes in laws and regulations, or existing laws and regulations that Webster becomes subject to, including those concerning banking, taxes, dividends, securities, insurance, cybersecurity, and healthcare administration, with which Webster and its subsidiaries must comply; adverse conditions in the securities markets that could lead to impairment in the value of Webster’s securities portfolio; possible changes in governmental monetary and fiscal policies, or any leadership changes of those determining such policies, including, but not limited to, Federal Reserve policies in connection with continued inflationary pressures; the effects of any restructurings, staff reductions, or other disruptions in the U.S. federal government or in agencies regulating or otherwise impacting Webster’s business; the impact of any new regulatory, policy, or enforcement developments resulting from the policies or actions of the current U.S. presidential administration, including changes in tariffs and other protectionist trade policies, any reciprocal and/or retaliatory tariffs by foreign countries, and any uncertainties related thereto, including as the foregoing may affect Webster's customers; the timely development and acceptance of any new products and services, and the perceived value of those products and services by customers; changes in deposit flows, consumer spending, borrowings, and savings habits; Webster’s ability to implement new technologies and maintain secure and reliable information and technology systems; the effects of any cybersecurity threats, attacks or disruptions, fraudulent activity, or other data breaches or security events, including those involving Webster’s third-party vendors and service providers; issues with the performance of Webster’s counterparties and third-party vendors; Webster’s ability to increase market share and control expenses; changes in the competitive environment among banks, financial holding companies, and other traditional and non-traditional financial service providers; Webster’s ability to maintain adequate sources of funding and liquidity; Webster’s ability to attract, develop, motivate, and retain skilled employees; changes in loan demand or real estate values; changes in the mix of loan geographies, sectors, or types and the level of non-performing assets, charge-offs, and delinquencies; changes in Webster’s estimates of current expected credit losses based upon periodic review under relevant regulatory and accounting requirements; the effect of changes in accounting policies and practices applicable to Webster, including impacts of recently adopted accounting guidance; legal and regulatory developments, including any due to judicial decisions, the initiation or resolution of legal proceedings or regulatory or other governmental inquiries, the results of regulatory examinations or reviews, disruptions at regulatory agencies, government funding or other issues; Webster’s ability to navigate differing environmental, social, governmental, and sustainability concerns among federal and state governmental administrations and judicial decisions, Webster’s stakeholders, and other activists that may arise from Webster’s business activities; Webster’s ability to assess and monitor the effect of evolving uses of artificial intelligence on its business and operations; the occurrence of natural disasters, severe weather events, and public health crises, and any governmental or societal responses thereto; and the other factors that are described in Webster’s Annual Report on Form 10-K for the year ended December 31, 2024, and subsequent filings with the U.S. Securities and Exchange Commission. Any forward-looking statement made by Webster in this release speaks only as of the date on which it is made. Factors or events that could cause Webster’s actual results to differ may emerge from time to time, and it is not possible for Webster to predict all of them. Webster undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
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Non-GAAP Financial Measures
In addition to results presented in accordance with GAAP, this press release contains certain non-GAAP financial measures, including the efficiency ratio, the return on average tangible common stockholders’ equity, the tangible equity ratio, the tangible common equity ratio, tangible book value per common share, and core deposits. A reconciliation of each non-GAAP financial measure to the most comparable GAAP financial measure is included in the accompanying selected financial highlights table.
Webster believes that certain non-GAAP financial measures provide investors with information useful in understanding its financial position, results of operations, the strength of its capital position, and overall business performance. These non-GAAP financial measures are used by Webster for performance measurement purposes, as well as for internal planning and forecasting, and by securities analysts, investors, and other interested parties to assess peer company operating performance. Webster believes that this presentation, together with the accompanying reconciliations, provides investors with a more complete understanding of the factors and trends affecting its business and allows investors to view its performance in a manner similar to management.
The efficiency ratio represents the costs expended to generate a dollar of revenue and is calculated excluding certain non-operational items. The return on average tangible common stockholders’ equity is calculated using net income less preferred stock dividends, adjusted for the tax-effected amortization of intangible assets, as a percentage of average stockholders’ equity less average preferred stock and average goodwill and other intangible assets. The tangible equity ratio represents stockholders’ equity less goodwill and other intangible assets (tangible stockholders’ equity) divided by total assets less goodwill and other intangible assets (tangible assets). The tangible common equity ratio represents stockholders’ equity less preferred stock and goodwill and other intangible assets (tangible common stockholders’ equity) divided by tangible assets. Tangible book value per common share represents tangible common stockholders’ equity divided by the number of common shares outstanding at the end of the reporting period. Core deposits reflect total deposits less certificates of deposit and brokered certificates of deposit.
These non-GAAP financial measures should not be considered a substitute for GAAP basis financial measures. Because non-GAAP financial measures are not standardized, it may not be possible to compare these with other companies that present financial measures having the same or similar names. Webster strongly encourages investors to review its consolidated financial statements in their entirety and to not rely on any single financial measure.
Refer the tables beginning on page 19 for Non-GAAP to GAAP reconciliations.
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WEBSTER FINANCIAL CORPORATION
Selected Financial Highlights (unaudited)
Three Months Ended
(In thousands, except ratio and per share data)
June 30, 2025
March 31, 2025
December 31, 2024
September 30, 2024
June 30, 2024
Income and performance ratios:
Net income
$
258,848
$
226,917
$
177,766
$
192,985
$
181,633
Net income applicable to common stockholders
251,695
220,367
171,760
186,799
175,494
Earnings per common share - Diluted
1.52
1.30
1.01
1.10
1.03
Return on average assets (annualized)
1.29
%
1.15
%
0.91
%
1.01
%
0.96
%
Return on average tangible common stockholders' equity (annualized) (1)
17.96
15.93
12.73
14.29
14.17
Return on average common stockholders’ equity (annualized)
11.31
9.94
7.80
8.67
8.40
Non-interest income as a percentage of total revenue
13.22
13.14
7.94
8.92
6.88
Asset quality:
Allowance for credit losses on loans and leases
$
722,046
$
713,321
$
689,566
$
687,798
$
669,355
Non-performing assets
537,050
564,708
461,751
427,274
374,884
Allowance for credit losses on loans and leases / total loans and leases
1.35
%
1.34
%
1.31
%
1.32
%
1.30
%
Net charge-offs / average loans and leases (annualized)
0.27
0.42
0.47
0.27
0.26
Non-performing loans and leases / total loans and leases
1.00
1.06
0.88
0.82
0.72
Non-performing assets / total loans and leases plus other real estate owned and repossessed assets
1.00
1.06
0.88
0.82
0.73
Allowance for credit losses on loans and leases / non-performing loans and leases
135.08
126.39
149.47
161.60
181.48
Other ratios:
Tangible equity (1)
7.82
%
7.80
%
7.82
%
7.85
%
7.56
%
Tangible common equity (1)
7.46
7.43
7.45
7.48
7.18
Tier 1 Risk-Based Capital (2)
11.84
11.76
12.06
11.77
11.09
Total Risk-Based Capital (2)
14.03
13.96
14.24
14.06
13.28
Common equity tier 1 Risk-Based Capital (2)
11.33
11.25
11.54
11.25
10.59
Stockholders’ equity / total assets
11.40
11.47
11.56
11.58
11.46
Net interest margin (3)
3.44
3.48
3.44
3.41
3.39
Efficiency ratio (1)
45.40
45.79
44.80
45.49
46.22
Equity and share related:
Common stockholders’ equity
$
9,053,638
$
8,920,175
$
8,849,235
$
8,914,071
$
8,525,289
Book value per common share
54.19
52.91
51.63
52.00
49.74
Tangible book value per common share (1)
35.13
33.97
32.95
33.26
30.82
Common stock closing price
54.60
51.55
55.22
46.61
43.59
Dividends declared per common share
0.40
0.40
0.40
0.40
0.40
Common shares outstanding
167,083
168,594
171,391
171,428
171,402
Weighted-average common shares outstanding - Basic
165,884
169,182
169,589
169,569
169,675
Weighted-average common shares - Diluted
166,131
169,544
170,005
169,894
169,937
(1)See “Non-GAAP to GAAP Reconciliations” section beginning on page 19.
(2)Presented as preliminary for June 30, 2025, and actual for the remaining periods.
(3)As of the first quarter of 2025, Webster changed the methodology used to annualize net interest income in its quarterly and year to date net interest margin calculation. Net interest margin for the prior periods has been recast.
11
WEBSTER FINANCIAL CORPORATION
Consolidated Balance Sheets (unaudited)
(In thousands)
June 30, 2025
March 31, 2025
June 30, 2024
Assets:
Cash and due from banks
$
425,349
$
421,124
$
333,138
Interest-bearing deposits
2,568,570
2,091,152
1,202,515
Investment securities:
Available-for-sale
9,620,354
9,360,097
7,808,874
Held-to-maturity, net
8,192,720
8,297,927
8,637,654
Total investment securities, net
17,813,074
17,658,024
16,446,528
Loans held for sale
278,409
63,849
248,137
Loans and leases:
Commercial
21,293,103
20,880,826
19,492,433
Commercial real estate
21,358,775
21,383,144
22,277,813
Residential mortgages
9,332,413
9,123,000
8,284,297
Consumer
1,687,668
1,669,253
1,518,922
Total loans and leases
53,671,959
53,056,223
51,573,465
Allowance for credit losses on loans and leases
(722,046)
(713,321)
(669,355)
Total loans and leases, net
52,949,913
52,342,902
50,904,110
Federal Home Loan Bank and Federal Reserve Bank stock
370,272
350,702
348,263
Deferred tax assets, net
252,442
249,395
354,482
Premises and equipment, net
422,774
422,425
417,700
Goodwill and other intangible assets, net
3,184,039
3,193,132
3,242,193
Cash surrender value of life insurance policies
1,262,311
1,255,074
1,241,367
Accrued interest receivable and other assets
2,387,117
2,231,971
2,099,673
Total assets
$
81,914,270
$
80,279,750
$
76,838,106
Liabilities and Stockholders’ Equity:
Deposits:
Demand
$
10,345,761
$
10,139,131
$
9,996,274
Interest-bearing checking
9,933,392
9,741,569
9,509,202
Health savings accounts
9,064,935
9,180,889
8,474,857
Money market
21,679,493
21,517,733
19,559,083
Savings
7,370,959
7,473,515
6,965,774
Certificates of deposit
6,069,447
6,036,144
5,861,431
Brokered certificates of deposit
1,850,438
1,486,248
1,910,071
Total deposits
66,314,425
65,575,229
62,276,692
Securities sold under agreements to repurchase and federal funds purchased
372,806
83,395
239,524
Federal Home Loan Bank advances
3,339,914
2,910,011
2,809,843
Long-term debt
905,634
907,410
912,743
Accrued expenses and other liabilities
1,643,874
1,599,551
1,790,036
Total liabilities
72,576,653
71,075,596
68,028,838
Preferred stock
283,979
283,979
283,979
Common stockholders’ equity
9,053,638
8,920,175
8,525,289
Total stockholders’ equity
9,337,617
9,204,154
8,809,268
Total liabilities and stockholders’ equity
$
81,914,270
$
80,279,750
$
76,838,106
12
WEBSTER FINANCIAL CORPORATION
Consolidated Statements of Income (unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
(In thousands, except per share data)
2025
2024
2025
2024
Interest income:
Interest and fees on loans and leases
$
775,203
$
798,097
$
1,530,320
$
1,590,142
Interest on investment securities
197,766
160,827
392,235
308,412
Loans held for sale
7
5,593
22
5,675
Other interest and dividends
27,611
11,769
51,497
23,907
Total interest income
1,000,587
976,286
1,974,074
1,928,136
Interest expense:
Deposits
339,738
361,263
666,121
697,234
Borrowings
39,667
42,726
74,579
90,866
Total interest expense
379,405
403,989
740,700
788,100
Net interest income
621,182
572,297
1,233,374
1,140,036
Provision for credit losses
46,500
59,000
124,000
104,500
Net interest income after provision for credit losses
574,682
513,297
1,109,374
1,035,536
Non-interest income:
Deposit service fees
40,934
41,027
79,829
83,616
Loan and lease related fees
17,657
19,334
35,278
39,101
Wealth and investment services
7,779
8,556
15,568
16,480
Cash surrender value of life insurance policies
9,172
6,359
17,164
12,305
Gain (loss) on sale of investment securities, net
—
(49,915)
220
(59,741)
Other income
19,115
16,937
39,204
49,890
Total non-interest income
94,657
42,298
187,263
141,651
Non-interest expense:
Compensation and benefits
199,930
186,850
398,575
375,390
Occupancy
19,337
15,103
39,054
34,542
Technology and equipment
45,932
45,303
93,651
91,139
Intangible assets amortization
9,093
8,716
18,330
17,910
Marketing
5,171
4,107
9,198
8,388
Professional and outside services
18,394
14,066
35,620
27,047
Deposit insurance
15,061
15,065
31,406
39,288
Other expenses
32,796
36,811
63,524
68,240
Total non-interest expense
345,714
326,021
689,358
661,944
Income before income taxes
323,625
229,574
607,279
515,243
Income tax expense
64,777
47,941
121,514
117,287
Net income
258,848
181,633
485,765
397,956
Preferred stock dividends
(4,162)
(4,162)
(8,325)
(8,325)
Income allocated to participating securities
(2,991)
(1,977)
(5,361)
(4,090)
Net income applicable to common stockholders
$
251,695
$
175,494
$
472,079
$
385,541
Weighted-average common shares outstanding - Basic
165,884
169,675
167,524
170,061
Weighted-average common shares - Diluted
166,131
169,937
167,853
170,351
Earnings per common share:
Basic
$
1.52
$
1.03
$
2.82
$
2.27
Diluted
1.52
1.03
2.81
2.26
13
WEBSTER FINANCIAL CORPORATION
Five Quarter Consolidated Statements of Income (unaudited)
Three Months Ended
(In thousands, except per share data)
June 30, 2025
March 31, 2025
December 31, 2024
September 30, 2024
June 30, 2024
Interest income:
Interest and fees on loans and leases
$
775,203
$
755,117
$
783,140
$
809,184
$
798,097
Interest on investment securities
197,766
194,469
189,801
176,722
160,827
Loans held for sale
7
15
2,836
5,400
5,593
Other interest and dividends
27,611
23,886
19,310
12,757
11,769
Total interest income
1,000,587
973,487
995,087
1,004,063
976,286
Interest expense:
Deposits
339,738
326,383
358,895
371,075
361,263
Borrowings
39,667
34,912
27,724
43,105
42,726
Total interest expense
379,405
361,295
386,619
414,180
403,989
Net interest income
621,182
612,192
608,468
589,883
572,297
Provision for credit losses
46,500
77,500
63,500
54,000
59,000
Net interest income after provision for credit losses
574,682
534,692
544,968
535,883
513,297
Non-interest income:
Deposit service fees
40,934
38,895
38,665
38,863
41,027
Loan and lease related fees
17,657
17,621
18,770
18,513
19,334
Wealth and investment services
7,779
7,789
8,387
8,367
8,556
Cash surrender value of life insurance policies
9,172
7,992
7,387
8,020
6,359
Gain (loss) on sale of investment securities, net
—
220
(56,886)
(19,597)
(49,915)
Other income
19,115
20,089
36,184
3,575
16,937
Total non-interest income
94,657
92,606
52,507
57,741
42,298
Non-interest expense:
Compensation and benefits
199,930
198,645
192,668
194,736
186,850
Occupancy
19,337
19,717
18,740
18,879
15,103
Technology and equipment
45,932
47,719
47,182
56,696
45,303
Intangible assets amortization
9,093
9,237
9,681
8,491
8,716
Marketing
5,171
4,027
6,139
4,224
4,107
Professional and outside services
18,394
17,226
15,205
16,001
14,066
Deposit insurance
15,061
16,345
16,069
13,555
15,065
Other expenses
32,796
30,728
34,693
36,376
36,811
Total non-interest expense
345,714
343,644
340,377
348,958
326,021
Income before income taxes
323,625
283,654
257,098
244,666
229,574
Income tax expense
64,777
56,737
79,332
51,681
47,941
Net income
258,848
226,917
177,766
192,985
181,633
Preferred stock dividends
(4,162)
(4,163)
(4,163)
(4,162)
(4,162)
Income allocated to participating securities
(2,991)
(2,387)
(1,843)
(2,024)
(1,977)
Net income applicable to common stockholders
$
251,695
$
220,367
$
171,760
$
186,799
$
175,494
Weighted-average common shares outstanding - Basic
165,884
169,182
169,589
169,569
169,675
Weighted-average common shares - Diluted
166,131
169,544
170,005
169,894
169,937
Earnings per common share:
Basic
$
1.52
$
1.30
$
1.01
$
1.10
$
1.03
Diluted
1.52
1.30
1.01
1.10
1.03
14
WEBSTER FINANCIAL CORPORATION
Consolidated Average Balances, Interest, Average Yields/Rates, and Net Interest Margin on a Fully Tax-equivalent Basis (unaudited)
Three Months Ended June 30,
2025
2024
(Dollars in thousands)
Average Balance
Interest Income/Expense
Average Yield/Rate
Average Balance
Interest Income/Expense
Average Yield/Rate
Assets:
Interest-earning assets:
Loans and leases
$
53,277,897
$
786,808
5.85
%
$
51,434,799
$
808,309
6.23
%
Investment securities (1)
18,225,632
200,031
4.39
17,080,554
164,930
3.86
Federal Home Loan and Federal Reserve Bank stock
346,514
4,243
4.91
336,342
5,166
6.18
Interest-bearing deposits
2,096,578
23,368
4.41
483,947
6,603
5.40
Loans held for sale
58,024
7
0.04
222,080
5,593
10.07
Total interest-earning assets
74,004,645
$
1,014,457
5.44
%
69,557,722
$
990,601
5.65
%
Non-interest-earning assets (1)
6,513,526
6,378,611
Total assets
$
80,518,171
$
75,936,333
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Demand
$
10,109,928
$
—
—
%
$
10,156,691
$
—
—
%
Interest-bearing checking
9,772,340
42,390
1.74
9,424,687
44,578
1.90
Health savings accounts
9,137,704
3,635
0.16
8,528,476
3,206
0.15
Money market
21,645,531
190,853
3.54
18,658,148
193,028
4.16
Savings
7,462,151
31,624
1.70
6,929,874
26,403
1.53
Certificates of deposit
6,061,399
51,873
3.43
5,908,811
65,782
4.48
Brokered certificates of deposit
1,774,379
19,363
4.38
2,108,412
28,266
5.39
Total deposits
65,963,432
339,738
2.07
61,715,099
361,263
2.35
Securities sold under agreements to repurchase
111,005
218
0.78
120,082
36
0.12
Federal funds purchased
—
—
—
78,242
1,078
5.45
Federal Home Loan Bank advances
2,650,111
29,825
4.45
2,429,653
33,727
5.49
Long-term debt (1)
885,773
9,624
4.35
887,528
7,885
3.55
Total borrowings
3,646,889
39,667
4.31
3,515,505
42,726
4.82
Total deposits and interest-bearing liabilities
69,610,321
$
379,405
2.18
%
65,230,604
$
403,989
2.49
%
Non-interest-bearing liabilities (1)
1,613,827
1,971,992
Total liabilities
71,224,148
67,202,596
Preferred stock
283,979
283,979
Common stockholders’ equity
9,010,044
8,449,758
Total stockholders’ equity
9,294,023
8,733,737
Total liabilities and stockholders’ equity
$
80,518,171
$
75,936,333
Tax-equivalent net interest income
635,052
586,612
Less: Tax-equivalent adjustments
(13,870)
(14,315)
Net interest income
$
621,182
$
572,297
Net interest margin (2)
3.44
%
3.39
%
(1)In order to provide the users of the Company’s financial statements with a more transparent view of the actual consolidated average balances that are used in the calculation of net interest margin, the Company has recast, in the above table, certain consolidated average balances for the three months ended June 30, 2024, to reflect a change in presentation being applied retrospectively. Specifically, adjustments were made to exclude average unsettled trades of $130.2 million and average available-for-sale unrealized losses of $828.6 million from investment securities, and to exclude an average basis adjustment of $26.1 million from long-term debt related to a de-designated fair value hedge. Rather, effective as of December 31, 2024, these amounts are being presented in average non-interest-earning assets and average non-interest-bearing liabilities, respectively. There were no changes to the related yields/rates or net interest income that had been previously disclosed.
(2)As of the first quarter of 2025, Webster changed the methodology used to annualize net interest income in its quarterly and year to date net interest margin calculation. Net interest margin for the prior periods has been recast. There were no changes to the related yields/rates or net interest income that had been previously disclosed.
15
WEBSTER FINANCIAL CORPORATION
Consolidated Average Balances, Interest, Average Yields/Rates, and Net Interest Margin on a Fully Tax-equivalent Basis (unaudited)
Six Months Ended June 30,
2025
2024
(Dollars in thousands)
Average Balance
Interest Income/Expense
Average Yield/Rate
Average Balance
Interest Income/Expense
Average Yield/Rate
Assets:
Interest-earning assets:
Loans and leases
$
52,925,112
$
1,553,196
5.85
%
$
51,186,608
$
1,610,173
6.23
%
Investment securities (1)
18,170,102
396,840
4.37
16,976,384
318,575
3.75
Federal Home Loan and Federal Reserve Bank stock
335,310
8,197
4.93
340,167
9,518
5.63
Interest-bearing deposits
1,958,803
43,300
4.40
528,174
14,389
5.39
Loans held for sale
43,459
22
0.10
117,749
5,675
9.64
Total interest-earning assets
73,432,786
$
2,001,555
5.43
%
69,149,082
$
1,958,330
5.62
%
Non-interest-earning assets (1)
6,463,140
6,485,467
Total assets
$
79,895,926
$
75,634,549
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Demand
$
10,196,846
$
—
—
%
$
10,369,552
$
—
—
%
Interest-bearing checking
9,741,252
83,289
1.72
9,339,970
85,931
1.85
Health savings accounts
9,222,141
7,195
0.16
8,567,058
6,397
0.15
Money market
21,381,682
373,960
3.53
18,380,405
379,780
4.16
Savings
7,284,366
59,767
1.65
6,813,823
47,948
1.42
Certificates of deposit
6,054,336
106,815
3.56
5,844,081
128,281
4.41
Brokered certificates of deposit
1,589,392
35,095
4.45
1,825,343
48,897
5.39
Total deposits
65,470,015
666,121
2.05
61,140,232
697,234
2.29
Securities sold under agreements to repurchase
177,413
1,894
2.12
125,367
207
0.33
Federal funds purchased
—
—
—
109,203
3,015
5.46
Federal Home Loan Bank advances
2,382,692
53,414
4.46
2,559,642
71,094
5.49
Long-term debt (1)
886,003
19,271
4.35
920,520
16,550
3.60
Total borrowings
3,446,108
74,579
4.31
3,714,732
90,866
4.85
Total deposits and interest-bearing liabilities
68,916,123
$
740,700
2.16
%
64,854,964
$
788,100
2.44
%
Non-interest-bearing liabilities (1)
1,710,270
2,032,720
Total liabilities
70,626,393
66,887,684
Preferred stock
283,979
283,979
Common stockholders’ equity
8,985,554
8,462,886
Total stockholders’ equity
9,269,533
8,746,865
Total liabilities and stockholders’ equity
$
79,895,926
$
75,634,549
Tax-equivalent net interest income
1,260,855
1,170,230
Less: Tax-equivalent adjustments
(27,481)
(30,194)
Net interest income
$
1,233,374
$
1,140,036
Net interest margin (2)
3.46
%
3.40
%
(1)In order to provide the users of the Company’s financial statements with a more transparent view of the actual consolidated average balances that are used in the calculation of net interest margin, the Company has recast, in the above table, certain consolidated average balances for the six months ended June 30, 2024, to reflect a change in presentation being applied retrospectively. Specifically, adjustments were made to exclude average unsettled trades of $119.5 million and average available-for-sale unrealized losses of $783.1 million from investment securities, and to exclude an average basis adjustment of $26.7 million from long-term debt related to a de-designated fair value hedge. Rather, effective as of December 31, 2024, these amounts are being presented in average non-interest-earning assets and average non-interest-bearing liabilities, respectively. There were no changes to the related yields/rates or net interest income that had been previously disclosed.
(2)As of the first quarter of 2025, Webster changed the methodology used to annualize net interest income in its quarterly and year to date net interest margin calculation. Net interest margin for the prior periods has been recast. There were no changes to the related yields/rates or net interest income that had been previously disclosed.
16
WEBSTER FINANCIAL CORPORATION Five Quarter Loans and Leases (unaudited)
(In thousands)
June 30, 2025
March 31, 2025
December 31, 2024
September 30, 2024
June 30, 2024
Loans and leases (actual):
Commercial non-mortgage
$
19,943,097
$
19,495,784
$
19,272,958
$
18,657,089
$
18,021,758
Asset-based lending
1,350,006
1,385,042
1,404,007
1,463,903
1,470,675
Commercial real estate
21,358,775
21,383,144
21,391,036
21,691,377
22,277,813
Residential mortgages
9,332,413
9,123,000
8,853,669
8,576,612
8,284,297
Consumer
1,687,668
1,669,253
1,583,498
1,558,034
1,518,922
Total loans and leases
53,671,959
53,056,223
52,505,168
51,947,015
51,573,465
Allowance for credit losses on loans and leases
(722,046)
(713,321)
(689,566)
(687,798)
(669,355)
Total loans and leases, net
$
52,949,913
$
52,342,902
$
51,815,602
$
51,259,217
$
50,904,110
Loans and leases (average):
Commercial non-mortgage
$
19,703,434
$
19,167,596
$
18,919,934
$
18,166,258
$
17,995,654
Asset-based lending
1,360,288
1,409,177
1,449,743
1,452,794
1,473,175
Commercial real estate
21,302,161
21,338,147
21,572,682
22,215,293
22,186,566
Residential mortgages
9,228,988
8,985,033
8,740,658
8,390,613
8,252,397
Consumer
1,683,026
1,668,453
1,572,414
1,527,235
1,527,007
Total loans and leases
$
53,277,897
$
52,568,406
$
52,255,431
$
51,752,193
$
51,434,799
17
WEBSTER FINANCIAL CORPORATION
Five Quarter Non-performing Assets and Past Due Loans and Leases (unaudited)
(In thousands)
June 30, 2025
March 31, 2025
December 31, 2024
September 30, 2024
June 30, 2024
Non-performing loans and leases:
Commercial non-mortgage
$
231,458
$
279,831
$
268,354
$
215,834
$
210,906
Asset-based lending
44,405
42,207
20,815
29,791
29,791
Commercial real estate
224,554
207,402
138,642
150,711
96,337
Residential mortgages
15,748
15,715
12,500
9,098
11,345
Consumer
18,357
19,243
21,015
20,183
20,457
Total non-performing loans and leases
$
534,522
$
564,398
$
461,326
$
425,617
$
368,836
Other real estate owned and repossessed assets:
Commercial non-mortgage
$
2,528
$
310
$
425
$
504
$
5,013
Residential mortgages
—
—
—
221
—
Consumer
—
—
—
932
1,035
Total other real estate owned and repossessed assets
$
2,528
$
310
$
425
$
1,657
$
6,048
Total non-performing assets
$
537,050
$
564,708
$
461,751
$
427,274
$
374,884
Past due 30-89 days:
Commercial non-mortgage
$
16,338
$
27,304
$
16,619
$
45,123
$
134,794
Asset-based lending
—
—
21,997
—
—
Commercial real estate
16,241
33,030
51,556
36,110
10,284
Residential mortgages
12,664
16,406
14,113
18,153
13,008
Consumer
9,516
9,906
9,122
9,471
8,185
Total past due 30-89 days
$
54,759
$
86,646
$
113,407
$
108,857
$
166,271
Past due 90 days or more and accruing
—
507
—
71
9
Total past due loans and leases
$
54,759
$
87,153
$
113,407
$
108,928
$
166,280
Five Quarter Changes in the Allowance for Credit Losses on Loans and Leases (unaudited)
Three Months Ended
(In thousands)
June 30, 2025
March 31, 2025
December 31, 2024
September 30, 2024
June 30, 2024
ACL on loans and leases, beginning balance
$
713,321
$
689,566
$
687,798
$
669,355
$
641,442
Provision
45,126
78,712
62,639
53,869
61,041
Charge-offs:
Commercial portfolio
39,792
55,566
63,281
36,362
33,356
Consumer portfolio
1,446
1,052
1,265
997
1,418
Total charge-offs
41,238
56,618
64,546
37,359
34,774
Recoveries:
Commercial portfolio
3,250
942
2,779
377
360
Consumer portfolio
1,587
719
896
1,556
1,286
Total recoveries
4,837
1,661
3,675
1,933
1,646
Total net charge-offs
36,401
54,957
60,871
35,426
33,128
ACL on loans and leases, ending balance
$
722,046
$
713,321
$
689,566
$
687,798
$
669,355
ACL on unfunded loan commitments
$
22,824
$
21,443
$
22,593
$
22,598
$
22,456
18
WEBSTER FINANCIAL CORPORATION
Non-GAAP to GAAP Reconciliations
Three Months Ended
(In thousands, except ratio and per share data)
June 30, 2025
March 31, 2025
December 31, 2024
September 30, 2024
June 30, 2024
Efficiency ratio:
Non-interest expense
$
345,714
$
343,644
$
340,377
$
348,958
$
326,021
Less: Foreclosed property activity
541
517
(32)
(687)
(364)
Intangible assets amortization
9,093
9,237
9,681
8,491
8,716
Operating lease depreciation
9
16
121
197
560
FDIC special assessment
—
—
—
(1,544)
—
Strategic restructuring costs and other
—
—
—
22,169
—
Adjusted non-interest expense
$
336,071
$
333,874
$
330,607
$
320,332
$
317,109
Net interest income
$
621,182
$
612,192
$
608,468
$
589,883
$
572,297
Add: Tax-equivalent adjustment
13,870
13,611
13,664
13,659
14,315
Non-interest income
94,657
92,606
52,507
57,741
42,298
Other income (1)
10,528
11,032
6,564
7,448
7,802
Less: Operating lease depreciation
9
16
121
197
560
Gain (loss) on sale of investment securities, net
—
220
(56,886)
(19,597)
(49,915)
Exit of non-core operations
—
—
—
(15,977)
—
Adjusted income
$
740,228
$
729,205
$
737,968
$
704,108
$
686,067
Efficiency ratio
45.40%
45.79%
44.80%
45.49%
46.22%
Return on average tangible common stockholders’ equity:
Net income
$
258,848
$
226,917
$
177,766
$
192,985
$
181,633
Less: Preferred stock dividends
4,162
4,163
4,163
4,162
4,162
Add: Intangible assets amortization, tax-effected
6,627
6,732
7,648
6,708
6,886
Adjusted net income
$
261,313
$
229,486
$
181,251
$
195,531
$
184,357
Adjusted net income, annualized basis
$
1,045,252
$
917,944
$
725,004
$
782,124
$
737,428
Average stockholders’ equity
$
9,294,023
$
9,245,030
$
9,186,082
$
8,995,134
$
8,733,737
Less: Average preferred stock
283,979
283,979
283,979
283,979
283,979
Average goodwill and other intangible assets, net
3,188,946
3,198,123
3,207,554
3,238,115
3,246,940
Average tangible common stockholders’ equity
$
5,821,098
$
5,762,928
$
5,694,549
$
5,473,040
$
5,202,818
Return on average tangible common stockholders’ equity
17.96%
15.93%
12.73%
14.29%
14.17%
(1)Other income reflects a tax-equivalent adjustment on income generated from low-income housing tax credit investments.
