STAMFORD, Conn., October 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 $254.1 million, or $1.54 per diluted share, for the quarter ended September 30, 2025, compared to $186.8 million, or $1.10 per diluted share, for the quarter ended September 30, 2024.
“Webster continues to exhibit strong financial results,” said John R. Ciulla, chairman and chief executive officer. “It is appropriate that on Webster’s 90th anniversary, the consistency and excellence Webster has delivered since its founding persists.”
Highlights for the third quarter of 2025:
•Revenue of $732.6 million.
•Period end loans and leases balance of $55.1 billion, up $1.4 billion, or 2.6 percent from prior quarter.
•Period end deposits balance of $68.2 billion, up $1.9 billion, or 2.8 percent, from prior quarter.
•Provision for credit losses of $44.0 million.
•Return on average assets of 1.27 percent.
•Return on average tangible common equity of 17.64 percent1.
•Net interest margin of 3.40 percent, down 4 basis points from prior quarter.
•Common equity tier 1 ratio of 11.40 percent2.
•Efficiency ratio of 45.79 percent1.
•Tangible common equity ratio of 7.50 percent1.
•Repurchased 2.2 million shares under Webster’s share repurchase program.
“Webster’s growth, efficiency, and returns are each reflective of the company’s favorable strategic positioning,” said Neal Holland, senior executive vice president and chief financial officer. “We are proud to deliver record quarterly EPS on the occasion of Webster’s 90th anniversary.”
1 See “Non-GAAP to GAAP Reconciliations” section beginning on page 19.
2 Presented as preliminary for September 30, 2025.
Consolidated financial performance:
Quarterly net interest income compared to the third quarter of 2024:
•Net interest income was $631.7 million, compared to $589.9 million.
•Net interest margin1 was 3.40 percent, compared to 3.41 percent. The yield on interest-earning assets decreased by 24 basis points, and the cost of deposits and interest-bearing liabilities decreased by 28 basis points.
•Average interest-earning assets totaled $75.4 billion, an increase of $5.0 billion, or 7.1 percent.
•Average loans and leases totaled $54.4 billion, an increase of $2.6 billion, or 5.1 percent.
•Average deposits totaled $67.3 billion, an increase of $4.7 billion, or 7.6 percent.
Quarterly provision for credit losses:
•The provision for credit losses was $44.0 million, compared to $46.5 million in the prior quarter, and $54.0 million a year ago.
•Net charge-offs were $38.4 million, compared to $36.4 million in the prior quarter, and $35.4 million a year ago. The ratio of net charge-offs to average loans and leases was 0.28 percent, compared to 0.27 percent in both the prior quarter and a year ago.
•The allowance for credit losses on loans and leases represented 1.32 percent of total loans and leases, compared to 1.35 percent at June 30, 2025, and 1.32 percent at September 30, 2024.
•The allowance for credit losses on loans and leases represented 134 percent of non-performing loans and leases, compared to 135 percent at June 30, 2025, and 162 percent at September 30, 2024.
Quarterly non-interest income compared to the third quarter of 2024:
•Total non-interest income was $100.9 million, compared to $57.7 million, an increase of $43.2 million. In the third quarter of 2024, total non-interest income included a $19.6 million net loss on sale of investment securities and a $16.0 million loss on the exit of non-core operations, which included the write-off of a related customer intangible. Excluding those items, total non-interest income increased $7.6 million. The increase is primarily driven by increased activity in client hedging activities, an increase in the credit valuation adjustment, and a $4.0 million beneficial legal settlement.
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 third quarter of 2024:
•Total non-interest expense was $356.7 million, compared to $349.0 million, an increase of $7.7 million. In the third quarter of 2024, total non-interest expense included a net $20.6 million related to strategic restructuring costs and other adjustments and a benefit on the FDIC special assessment. Excluding those charges, total non-interest expense increased $28.3 million. The increase is primarily driven by investments in human capital, increased performance-based incentives, business development, and risk management infrastructure.
Quarterly income taxes compared to the third quarter of 2024:
•Income tax expense was $70.7 million, compared to $51.7 million, and the effective tax rate was 21.3 percent, compared to 21.1 percent. The higher effective tax rate in the current quarter reflects the effects of a higher level of income in 2025, compared to 2024, partially offset by the recognition of discrete tax benefits, compared to discrete tax expense a year ago.
Investment securities:
•Total investment securities, net, were $18.0 billion, compared to $17.8 billion at June 30, 2025, and $17.2 billion at September 30, 2024. The carrying value of the available-for-sale portfolio included $496.8 million of net unrealized losses, compared to $568.3 million at June 30, 2025, and $486.1 million at September 30, 2024. The carrying value of the held-to-maturity portfolio does not reflect $836.7 million of net unrealized losses, compared to $901.6 million at June 30, 2025, and $677.0 million at September 30, 2024.
Loans and leases:
•Total loans and leases were $55.1 billion, compared to $53.7 billion at June 30, 2025, and $51.9 billion at September 30, 2024. Compared to June 30, 2025, commercial loans and leases increased by $619.7 million, commercial real estate loans increased by $552.5 million, residential mortgages increased by $176.7 million, and consumer loans increased by $31.2 million. Compared to September 30, 2024, commercial loans and leases increased by $1.8 billion, commercial real estate loans increased by $219.9 million, residential mortgages increased by $932.5 million, and consumer loans increased by $160.8 million.
•Loan originations for the portfolio were $4.1 billion, compared to $3.8 billion in the prior quarter, and $2.8 billion a year ago.
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Asset quality:
•Total non-performing loans and leases were $543.9 million, compared to $534.5 million at June 30, 2025, and $425.6 million at September 30, 2024. The ratio of total non-performing loans and leases to total loans and leases was 0.99 percent, compared to 1.00 percent at June 30, 2025, and 0.82 percent at September 30, 2024.
•Past due loans and leases were $65.6 million, compared to $54.8 million at June 30, 2025, and $108.9 million at September 30, 2024. The increase from prior quarter is primarily driven by commercial real estate and residential mortgages, partially offset by a decrease in commercial non-mortgage.
Deposits and borrowings:
•Total deposits were $68.2 billion, compared to $66.3 billion at June 30, 2025, and $64.5 billion at September 30, 2024. The ratio of core deposits to total deposits1 was 88.9 percent, compared to 88.1 percent at June 30, 2025, and 88.5 percent at September 30, 2024. The loan to deposit ratio was 80.8 percent, compared to 80.9 percent at June 30, 2025, and 80.5 percent at September 30, 2024.
•Total borrowings were $3.9 billion, compared to $4.6 billion at June 30, 2025, and $4.1 billion at September 30, 2024.
Capital:
•The return on average common stockholders’ equity and the return on average tangible common stockholders’ equity1 were 11.23 percent and 17.64 percent, respectively, compared to 11.31 percent and 17.96 percent, respectively, in the prior quarter, and 8.67 percent and 14.29 percent, respectively, a year ago.
•The tangible equity1 and tangible common equity1 ratios were 7.86 percent and 7.50 percent, respectively, compared to 7.82 percent and 7.46 percent, respectively, at June 30, 2025, and 7.85 percent and 7.48 percent, respectively, at September 30, 2024.
•The common equity tier 12 ratio was 11.40 percent, compared to 11.35 percent at June 30, 2025, and 11.25 percent at September 30, 2024.
•Book value per common share and tangible book value per common share1 were $55.69 and $36.42, respectively, compared to $54.19 and $35.13, respectively, at June 30, 2025, and $52.00 and $33.26, respectively, at September 30, 2024.
1 See “Non-GAAP to GAAP Reconciliations” section beginning on page 19.
2 Presented as preliminary for September 30, 2025, and actual for the remaining periods.
4
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 September 30, 2025, Commercial Banking had $42.4 billion in loans and leases and $18.3 billion in deposits, as well as a combined $2.8 billion in assets under administration (“AUA”) and management (“AUM”).
Commercial Banking Operating Results:
Percent
Three months ended September 30,
Favorable/
(In thousands)
2025
2024
(Unfavorable)
Net interest income
$328,306
$338,424
(3.0)
%
Non-interest income
33,902
33,288
1.8
Operating revenue
362,208
371,712
(2.6)
Non-interest expense
108,590
100,892
(7.6)
Pre-tax, pre-provision net revenue
$253,618
$270,820
(6.4)
Percent
September 30,
Increase/
(In millions)
2025
2024
(Decrease)
Loans and leases
$42,361
$40,372
4.9
%
Deposits
18,261
17,124
6.6
AUA / AUM (off balance sheet)
2,813
2,968
(5.2)
Pre-tax, pre-provision net revenue decreased $17.2 million, to $253.6 million, in the quarter as compared to the prior year. Net interest income decreased $10.1 million, to $328.3 million, primarily driven by a lower net spread on loans and leases, partially offset by higher average loan and deposit balances. Non-interest income increased $0.6 million, to $33.9 million, primarily driven by higher syndication and prepayment fees and an increase in client hedging activities, partially offset by a non-recurring gain from a multi-family securitization event in the third quarter of 2024. Non-interest expense increased $7.7 million, to $108.6 million, primarily driven by increased investments in human capital, operational process improvements, and technology, and higher foreclosed property and loan workout expenses.
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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 September 30, 2025, Healthcare Financial Services had $16.6 billion in total footings comprising $10.3 billion in deposits and $6.3 billion in AUA through linked investment accounts.
Healthcare Financial Services Operating Results:
Percent
Three months ended September 30,
Favorable/
(In thousands)
2025
2024
(Unfavorable)
Net interest income
$100,041
$93,940
6.5
%
Non-interest income
27,304
26,541
2.9
Operating revenue
127,345
120,481
5.7
Non-interest expense
54,492
54,023
(0.9)
Pre-tax net revenue
$72,853
$66,458
9.6
September 30,
Percent
(Dollars in millions)
2025
2024
Increase
Number of accounts (thousands)
3,475
3,341
4.0
%
Deposits
$10,305
$9,940
3.7
Linked investment accounts (off balance sheet)
6,270
5,205
20.5
Total footings
$16,575
$15,146
9.4
Pre-tax net revenue increased $6.4 million, to $72.9 million, in the quarter as compared to the prior year. Net interest income increased $6.1 million, to $100.0 million, primarily driven by higher deposit balances, partially offset by lower deposit spreads. Non-interest income increased $0.8 million, to $27.3 million, primarily driven by higher interchange and medical fees. Non-interest expense increased $0.5 million, to $54.5 million, primarily driven by higher compensation and benefits costs, partially offset by lower service contract expenses.
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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 September 30, 2025, Consumer Banking had $12.7 billion in loans and $27.5 billion in deposits, as well as $7.7 billion in AUA.
Consumer Banking Operating Results:
Percent
Three months ended September 30,
Favorable/
(In thousands)
2025
2024
(Unfavorable)
Net interest income
$214,465
$202,122
6.1
%
Non-interest income
24,909
28,299
(12.0)
Operating revenue
239,374
230,421
3.9
Non-interest expense
125,397
116,253
(7.9)
Pre-tax, pre-provision net revenue
$113,977
$114,168
(0.2)
Percent
September 30,
Increase/
(In millions)
2025
2024
(Decrease)
Loans
$12,683
$11,571
9.6
%
Deposits
27,548
27,020
2.0
AUA (off balance sheet)
7,656
7,948
(3.7)
Pre-tax, pre-provision net revenue decreased $0.2 million, to $114.0 million, in the quarter as compared to the prior year. Net interest income increased $12.3 million, to $214.5 million, primarily driven by higher average loan and deposit balances coupled with a higher interest rate spreads on loans, partially offset by a lower interest rate spread on deposits. Non-interest income decreased $3.4 million, to $24.9 million, primarily driven by a non-recurring gain on an investment portfolio sale in the third quarter of 2024 and lower investment services income. Non-interest expense increased $9.1 million, to $125.4 million, primarily driven by increased investments in technology, employee-related expenses, and loan-related expenses.
7
***
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 more than $83 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 third quarter 2025 earnings announcement will be held today, Friday, October 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 October 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 “could,” “believes,” “anticipates,” “expects,” “intends,” “outlook,” “target,” “continue,” “remain,” “will,” “should,” “may,” “might,” “plans,” “estimates,” “likely,” “future,” 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 (including any potential effects from the current government shutdown) in the U.S. federal government or in agencies regulating or otherwise impacting Webster’s business; the direct or indirect impact of any new regulatory, policy, or enforcement developments resulting from the policies or actions of the current U.S. presidential administration, including trade deals, changes in tariffs and other protectionist trade policies, any reciprocal and/or retaliatory tariffs by foreign countries, and any uncertainties related thereto; 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, including reputational damage, 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; possible downgrades in Webster’s credit ratings; limitations on Webster’s ability to receive dividends from its subsidiaries; 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; the impact of any of the foregoing on the business or credit quality of Webster’s customers; 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.
9
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)
September 30, 2025
June 30, 2025
March 31, 2025
December 31, 2024
September 30, 2024
Income and performance ratios:
Net income
$
261,217
$
258,848
$
226,917
$
177,766
$
192,985
Net income applicable to common stockholders
254,051
251,695
220,367
171,760
186,799
Earnings per common share - Diluted
1.54
1.52
1.30
1.01
1.10
Return on average assets (annualized)
1.27
%
1.29
%
1.15
%
0.91
%
1.01
%
Return on average tangible common stockholders' equity (annualized) (1)
17.64
17.96
15.93
12.73
14.29
Return on average common stockholders’ equity (annualized)
11.23
11.31
9.94
7.80
8.67
Non-interest income as a percentage of total revenue
13.77
13.22
13.14
7.94
8.92
Asset quality:
Allowance for credit losses on loans and leases
$
727,897
$
722,046
$
713,321
$
689,566
$
687,798
Non-performing assets
545,327
537,050
564,708
461,751
427,274
Allowance for credit losses on loans and leases / total loans and leases
1.32
%
1.35
%
1.34
%
1.31
%
1.32
%
Net charge-offs / average loans and leases (annualized)
0.28
0.27
0.42
0.47
0.27
Non-performing loans and leases / total loans and leases
0.99
1.00
1.06
0.88
0.82
Non-performing assets / total loans and leases plus other real estate owned and repossessed assets
0.99
1.00
1.06
0.88
0.82
Allowance for credit losses on loans and leases / non-performing loans and leases
133.82
135.08
126.39
149.47
161.60
Other ratios:
Tangible equity (1)
7.86
%
7.82
%
7.80
%
7.82
%
7.85
%
Tangible common equity (1)
7.50
7.46
7.43
7.45
7.48
Tier 1 Risk-Based Capital (2)
11.90
11.86
11.76
12.06
11.77
Total Risk-Based Capital (2)
14.69
14.05
13.96
14.24
14.06
Common equity tier 1 Risk-Based Capital (2)
11.40
11.35
11.25
11.54
11.25
Stockholders’ equity / total assets
11.37
11.40
11.47
11.56
11.58
Net interest margin (3)
3.40
3.44
3.48
3.44
3.41
Efficiency ratio (1)
45.79
45.40
45.79
44.80
45.49
Equity and share related:
Common stockholders’ equity
$
9,178,698
$
9,053,638
$
8,920,175
$
8,849,235
$
8,914,071
Book value per common share
55.69
54.19
52.91
51.63
52.00
Tangible book value per common share (1)
36.42
35.13
33.97
32.95
33.26
Common stock closing price
59.44
54.60
51.55
55.22
46.61
Dividends declared per common share
0.40
0.40
0.40
0.40
0.40
Common shares outstanding
164,817
167,083
168,594
171,391
171,428
Weighted-average common shares outstanding - Basic
164,138
165,884
169,182
169,589
169,569
Weighted-average common shares - Diluted
164,456
166,131
169,544
170,005
169,894
(1)See “Non-GAAP to GAAP Reconciliations” section beginning on page 19.
(2)Presented as preliminary for September 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)
September 30, 2025
June 30, 2025
September 30, 2024
Assets:
Cash and due from banks
$
498,801
$
425,349
$
721,261
Interest-bearing deposits
2,563,680
2,568,570
2,476,290
Investment securities:
Available-for-sale
9,932,344
9,620,354
8,594,978
Held-to-maturity, net
8,077,505
8,192,720
8,565,936
Total investment securities, net
18,009,849
17,813,074
17,160,914
Loans held for sale
75,386
278,409
117,615
Loans and leases:
Commercial
21,912,809
21,293,103
20,120,992
Commercial real estate
21,911,298
21,358,775
21,691,377
Residential mortgages
9,509,142
9,332,413
8,576,612
Consumer
1,718,832
1,687,668
1,558,034
Total loans and leases
55,052,081
53,671,959
51,947,015
Allowance for credit losses on loans and leases
(727,897)
(722,046)
(687,798)
Total loans and leases, net
54,324,184
52,949,913
51,259,217
Federal Home Loan Bank and Federal Reserve Bank stock
340,231
370,272
360,795
Deferred tax assets, net
220,972
252,442
273,174
Premises and equipment, net
427,215
422,774
411,070
Goodwill and other intangible assets, net
3,175,747
3,184,039
3,212,050
Cash surrender value of life insurance policies
1,266,491
1,262,311
1,247,624
Accrued interest receivable and other assets
2,290,096
2,387,117
2,213,890
Total assets
$
83,192,652
$
81,914,270
$
79,453,900
Liabilities and Stockholders’ Equity:
Deposits:
Demand
$
10,491,975
$
10,345,761
$
10,744,524
Interest-bearing checking
10,723,584
9,933,392
10,016,651
Health savings accounts
9,135,425
9,064,935
8,951,383
Money market
23,188,134
21,679,493
20,460,382
Savings
7,060,713
7,370,959
6,921,459
Certificates of deposit
6,202,906
6,069,447
6,020,031
Brokered certificates of deposit
1,372,907
1,850,438
1,400,000
Total deposits
68,175,644
66,314,425
64,514,430
Securities sold under agreements to repurchase and federal funds purchased
101,717
372,806
100,232
Federal Home Loan Bank advances
2,560,817
3,339,914
3,110,205
Long-term debt
1,249,612
905,634
910,963
Accrued expenses and other liabilities
1,642,185
1,643,874
1,620,020
Total liabilities
73,729,975
72,576,653
70,255,850
Preferred stock
283,979
283,979
283,979
Common stockholders’ equity
9,178,698
9,053,638
8,914,071
Total stockholders’ equity
9,462,677
9,337,617
9,198,050
Total liabilities and stockholders’ equity
$
83,192,652
$
81,914,270
$
79,453,900
12
WEBSTER FINANCIAL CORPORATION
Consolidated Statements of Income (unaudited)
Three Months Ended September 30,
Nine Months Ended September 30,
(In thousands, except per share data)
2025
2024
2025
2024
Interest income:
Interest and fees on loans and leases
$
794,668
$
809,184
$
2,324,988
$
2,399,326
Interest on investment securities
201,321
176,722
593,556
485,134
Loans held for sale
3,988
5,400
4,010
11,075
Other interest and dividends
28,325
12,757
79,822
36,664
Total interest income
1,028,302
1,004,063
3,002,376
2,932,199
Interest expense:
Deposits
355,504
371,075
1,021,625
1,068,309
Borrowings
41,131
43,105
115,710
133,971
Total interest expense
396,635
414,180
1,137,335
1,202,280
Net interest income
631,667
589,883
1,865,041
1,729,919
Provision for credit losses
44,000
54,000
168,000
158,500
Net interest income after provision for credit losses
587,667
535,883
1,697,041
1,571,419
Non-interest income:
Deposit service fees
39,576
38,863
119,405
122,479
Loan and lease related fees
16,404
18,513
51,682
57,614
Wealth and investment services
7,640
8,367
23,208
24,847
Cash surrender value of life insurance policies
7,535
8,020
24,699
20,325
Gain (loss) on sale of investment securities, net
—
(19,597)
220
(79,338)
Other income
29,751
3,575
68,955
53,465
Total non-interest income
100,906
57,741
288,169
199,392
Non-interest expense:
Compensation and benefits
209,036
194,736
607,611
570,126
Occupancy
19,003
18,879
58,057
53,421
Technology and equipment
47,520
56,696
141,171
147,835
Intangible assets amortization
8,966
8,491
27,296
26,401
Marketing
4,953
4,224
14,151
12,612
Professional and outside services
17,815
16,001
53,435
43,048
Deposit insurance
15,621
13,555
47,027
52,843
Other expenses
33,755
36,376
97,279
104,616
Total non-interest expense
356,669
348,958
1,046,027
1,010,902
Income before income taxes
331,904
244,666
939,183
759,909
Income tax expense
70,687
51,681
192,201
168,968
Net income
261,217
192,985
746,982
590,941
Preferred stock dividends
(4,162)
(4,162)
(12,487)
(12,487)
Income allocated to participating securities
(3,004)
(2,024)
(8,339)
(6,136)
Net income applicable to common stockholders
$
254,051
$
186,799
$
726,156
$
572,318
Weighted-average common shares outstanding - Basic
164,138
169,569
166,386
169,898
Weighted-average common shares - Diluted
164,456
169,894
166,738
170,226
Earnings per common share:
Basic
$
1.55
$
1.10
$
4.36
$
3.37
Diluted
1.54
1.10
4.36
3.36
13
WEBSTER FINANCIAL CORPORATION
Five Quarter Consolidated Statements of Income (unaudited)
Three Months Ended
(In thousands, except per share data)
September 30, 2025
June 30, 2025
March 31, 2025
December 31, 2024
September 30, 2024
Interest income:
Interest and fees on loans and leases
$
794,668
$
775,203
$
755,117
$
783,140
$
809,184
Interest on investment securities
201,321
197,766
194,469
189,801
176,722
Loans held for sale
3,988
7
15
2,836
5,400
Other interest and dividends
28,325
27,611
23,886
19,310
12,757
Total interest income
1,028,302
1,000,587
973,487
995,087
1,004,063
Interest expense:
Deposits
355,504
339,738
326,383
358,895
371,075
Borrowings
41,131
39,667
34,912
27,724
43,105
Total interest expense
396,635
379,405
361,295
386,619
414,180
Net interest income
631,667
621,182
612,192
608,468
589,883
Provision for credit losses
44,000
46,500
77,500
63,500
54,000
Net interest income after provision for credit losses
587,667
574,682
534,692
544,968
535,883
Non-interest income:
Deposit service fees
39,576
40,934
38,895
38,665
38,863
Loan and lease related fees
16,404
17,657
17,621
18,770
18,513
Wealth and investment services
7,640
7,779
7,789
8,387
8,367
Cash surrender value of life insurance policies
7,535
9,172
7,992
7,387
8,020
Gain (loss) on sale of investment securities, net
—
—
220
(56,886)
(19,597)
Other income
29,751
19,115
20,089
36,184
3,575
Total non-interest income
100,906
94,657
92,606
52,507
57,741
Non-interest expense:
Compensation and benefits
209,036
199,930
198,645
192,668
194,736
Occupancy
19,003
19,337
19,717
18,740
18,879
Technology and equipment
47,520
45,932
47,719
47,182
56,696
Intangible assets amortization
8,966
9,093
9,237
9,681
8,491
Marketing
4,953
5,171
4,027
6,139
4,224
Professional and outside services
17,815
18,394
17,226
15,205
16,001
Deposit insurance
15,621
15,061
16,345
16,069
13,555
Other expenses
33,755
32,796
30,728
34,693
36,376
Total non-interest expense
356,669
345,714
343,644
340,377
348,958
Income before income taxes
331,904
323,625
283,654
257,098
244,666
Income tax expense
70,687
64,777
56,737
79,332
51,681
Net income
261,217
258,848
226,917
177,766
192,985
Preferred stock dividends
(4,162)
(4,162)
(4,163)
(4,163)
(4,162)
Income allocated to participating securities
(3,004)
(2,991)
(2,387)
(1,843)
(2,024)
Net income applicable to common stockholders
$
254,051
$
251,695
$
220,367
$
171,760
$
186,799
Weighted-average common shares outstanding - Basic
164,138
165,884
169,182
169,589
169,569
Weighted-average common shares - Diluted
164,456
166,131
169,544
170,005
169,894
Earnings per common share:
Basic
$
1.55
$
1.52
$
1.30
$
1.01
$
1.10
Diluted
1.54
1.52
1.30
1.01
1.10
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 September 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
$
54,372,960
$
806,695
5.83
%
$
51,752,193
$
820,209
6.22
%
Investment securities (1)
18,371,777
203,552
4.43
17,483,341
179,356
4.10
Federal Home Loan and Federal Reserve Bank stock
345,001
4,729
5.44
340,330
4,383
5.12
Interest-bearing deposits
2,120,664
23,596
4.35
629,180
8,374
5.21
Loans held for sale
192,686
3,988
8.28
216,735
5,400
9.97
Total interest-earning assets
75,403,088
$
1,042,560
5.45
%
70,421,779
$
1,017,722
5.69
%
Non-interest-earning assets (1)
6,591,115
6,383,522
Total assets
$
81,994,203
$
76,805,301
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Demand
$
10,141,954
$
—
—
%
$
10,243,045
$
—
—
%
Interest-bearing checking
10,502,974
47,305
1.79
9,744,885
48,160
1.96
Health savings accounts
9,127,705
3,886
0.17
8,546,941
3,257
0.15
Money market
22,513,065
201,086
3.54
19,945,165
208,980
4.17
Savings
7,233,339
30,813
1.69
6,909,526
29,140
1.69
Certificates of deposit
6,120,864
53,853
3.49
5,895,329
64,368
4.34
Brokered certificates of deposit
1,679,127
18,561
4.39
1,294,764
17,170
5.28
Total deposits
67,319,028
355,504
2.10
62,579,655
371,075
2.36
Securities sold under agreements to repurchase
139,567
631
1.77
125,738
38
0.12
Federal Home Loan Bank advances
2,602,949
29,620
4.45
2,535,497
35,172
5.43
Long-term debt (1)
960,497
10,880
4.53
887,090
7,895
3.56
Total borrowings
3,703,013
41,131
4.37
3,548,325
43,105
4.77
Total deposits and interest-bearing liabilities
71,022,041
$
396,635
2.21
%
66,127,980
$
414,180
2.49
%
Non-interest-bearing liabilities (1)
1,532,014
1,682,187
Total liabilities
72,554,055
67,810,167
Preferred stock
283,979
283,979
Common stockholders’ equity
9,156,169
8,711,155
Total stockholders’ equity
9,440,148
8,995,134
Total liabilities and stockholders’ equity
$
81,994,203
$
76,805,301
Tax-equivalent net interest income
645,925
603,542
Less: Tax-equivalent adjustments
(14,258)
(13,659)
Net interest income
$
631,667
$
589,883
Net interest margin (2)
3.40
%
3.41
%
(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 September 30, 2024, to reflect a change in presentation being applied retrospectively. Specifically, adjustments were made to exclude average unsettled trades of $52.3 million and average available-for-sale unrealized losses of $649.2 million from investment securities, and to exclude an average basis adjustment of $24.7 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.
15
WEBSTER FINANCIAL CORPORATION
Consolidated Average Balances, Interest, Average Yields/Rates, and Net Interest Margin on a Fully Tax-equivalent Basis (unaudited)
Nine Months Ended September 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
$
53,413,031
$
2,359,891
5.84
%
$
51,376,513
$
2,430,382
6.23
%
Investment securities (1)
18,238,066
600,392
4.39
17,146,601
497,931
3.87
Federal Home Loan and Federal Reserve Bank stock
338,576
12,926
5.10
340,222
13,901
5.46
Interest-bearing deposits
2,013,349
66,896
4.38
563,217
22,763
5.31
Loans held for sale
93,748
4,010
5.70
150,985
11,075
9.78
Total interest-earning assets
74,096,770
$
3,044,115
5.44
%
69,577,538
$
2,976,052
5.65
%
Non-interest-earning assets (1)
6,506,268
6,450,110
Total assets
$
80,603,038
$
76,027,648
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Demand
$
10,178,346
$
—
—
%
$
10,327,076
$
—
—
%
Interest-bearing checking
9,997,950
130,594
1.75
9,475,927
134,091
1.89
Health savings accounts
9,190,317
11,081
0.16
8,560,303
9,654
0.15
Money market
21,762,954
575,046
3.53
18,905,798
588,760
4.16
Savings
7,267,170
90,580
1.67
6,845,957
77,088
1.50
Certificates of deposit
6,076,756
160,668
3.53
5,861,288
192,649
4.39
Brokered certificates of deposit
1,619,633
53,656
4.43
1,647,193
66,067
5.36
Total deposits
66,093,126
1,021,625
2.07
61,623,542
1,068,309
2.32
Securities sold under agreements to repurchase
164,659
2,525
2.02
125,492
245
0.26
Federal funds purchased
—
—
—
72,537
3,015
5.46
Federal Home Loan Bank advances
2,456,918
83,034
4.46
2,551,535
106,266
5.47
Long-term debt (1)
911,107
30,151
4.41
909,294
24,445
3.58
Total borrowings
3,532,684
115,710
4.33
3,658,858
133,971
4.82
Total deposits and interest-bearing liabilities
69,625,810
$
1,137,335
2.18
%
65,282,400
$
1,202,280
2.46
%
Non-interest-bearing liabilities (1)
1,650,198
1,915,023
Total liabilities
71,276,008
67,197,423
Preferred stock
283,979
283,979
Common stockholders’ equity
9,043,051
8,546,246
Total stockholders’ equity
9,327,030
8,830,225
Total liabilities and stockholders’ equity
$
80,603,038
$
76,027,648
Tax-equivalent net interest income
1,906,780
1,773,772
Less: Tax-equivalent adjustments
(41,739)
(43,853)
Net interest income
$
1,865,041
$
1,729,919
Net interest margin (2)
3.44
%
3.41
%
(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 nine months ended September 30, 2024, to reflect a change in presentation being applied retrospectively. Specifically, adjustments were made to exclude average unsettled trades of $97.0 million and average available-for-sale unrealized losses of $738.2 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.
16
WEBSTER FINANCIAL CORPORATION Five Quarter Loans and Leases (unaudited)
(In thousands)
September 30, 2025
June 30, 2025
March 31, 2025
December 31, 2024
September 30, 2024
Loans and leases (actual):
Commercial non-mortgage
$
20,654,331
$
19,943,097
$
19,495,784
$
19,272,958
$
18,657,089
Asset-based lending
1,258,478
1,350,006
1,385,042
1,404,007
1,463,903
Commercial real estate
21,911,298
21,358,775
21,383,144
21,391,036
21,691,377
Residential mortgages
9,509,142
9,332,413
9,123,000
8,853,669
8,576,612
Consumer
1,718,832
1,687,668
1,669,253
1,583,498
1,558,034
Total loans and leases
55,052,081
53,671,959
53,056,223
52,505,168
51,947,015
Allowance for credit losses on loans and leases
(727,897)
(722,046)
(713,321)
(689,566)
(687,798)
Total loans and leases, net
$
54,324,184
$
52,949,913
$
52,342,902
$
51,815,602
$
51,259,217
Loans and leases (average):
Commercial non-mortgage
$
20,451,639
$
19,703,434
$
19,167,596
$
18,919,934
$
18,166,258
Asset-based lending
1,289,208
1,360,288
1,409,177
1,449,743
1,452,794
Commercial real estate
21,508,546
21,302,161
21,338,147
21,572,682
22,215,293
Residential mortgages
9,416,499
9,228,988
8,985,033
8,740,658
8,390,613
Consumer
1,707,068
1,683,026
1,668,453
1,572,414
1,527,235
Total loans and leases
$
54,372,960
$
53,277,897
$
52,568,406
$
52,255,431
$
51,752,193
17
WEBSTER FINANCIAL CORPORATION
Five Quarter Non-performing Assets and Past Due Loans and Leases (unaudited)
(In thousands)
September 30, 2025
June 30, 2025
March 31, 2025
December 31, 2024
September 30, 2024
Non-performing loans and leases:
Commercial non-mortgage
$
223,398
$
231,458
$
279,831
$
268,354
$
215,834
Asset-based lending
58,797
44,405
42,207
20,815
29,791
Commercial real estate
227,118
224,554
207,402
138,642
150,711
Residential mortgages
16,843
15,748
15,715
12,500
9,098
Consumer
17,772
18,357
19,243
21,015
20,183
Total non-performing loans and leases
$
543,928
$
534,522
$
564,398
$
461,326
$
425,617
Other real estate owned and repossessed assets:
Commercial non-mortgage
$
1,399
$
2,528
$
310
$
425
$
504
Residential mortgages
—
—
—
—
221
Consumer
—
—
—
—
932
Total other real estate owned and repossessed assets
$
1,399
$
2,528
$
310
$
425
$
1,657
Total non-performing assets
$
545,327
$
537,050
$
564,708
$
461,751
$
427,274
Past due 30-89 days:
Commercial non-mortgage
$
10,934
$
16,338
$
27,304
$
16,619
$
45,123
Asset-based lending
—
—
—
21,997
—
Commercial real estate
27,812
16,241
33,030
51,556
36,110
Residential mortgages
17,000
12,664
16,406
14,113
18,153
Consumer
8,730
9,516
9,906
9,122
9,471
Total past due 30-89 days
$
64,476
$
54,759
$
86,646
$
113,407
$
108,857
Past due 90 days or more and accruing
1,152
—
507
—
71
Total past due loans and leases
$
65,628
$
54,759
$
87,153
$
113,407
$
108,928
Five Quarter Changes in the Allowance for Credit Losses on Loans and Leases (unaudited)
Three Months Ended
(In thousands)
September 30, 2025
June 30, 2025
March 31, 2025
December 31, 2024
September 30, 2024
ACL on loans and leases, beginning balance
$
722,046
$
713,321
$
689,566
$
687,798
$
669,355
Provision
44,205
45,126
78,712
62,639
53,869
Charge-offs:
Commercial portfolio
37,914
39,792
55,566
63,281
36,362
Consumer portfolio
2,003
1,446
1,052
1,265
997
Total charge-offs
39,917
41,238
56,618
64,546
37,359
Recoveries:
Commercial portfolio
765
3,250
942
2,779
377
Consumer portfolio
798
1,587
719
896
1,556
Total recoveries
1,563
4,837
1,661
3,675
1,933
Total net charge-offs
38,354
36,401
54,957
60,871
35,426
ACL on loans and leases, ending balance
$
727,897
$
722,046
$
713,321
$
689,566
$
687,798
ACL on unfunded loan commitments
$
23,117
$
22,824
$
21,443
$
22,593
$
22,598
18
WEBSTER FINANCIAL CORPORATION
Non-GAAP to GAAP Reconciliations
Three Months Ended
(In thousands, except ratio and per share data)
September 30, 2025
June 30, 2025
March 31, 2025
December 31, 2024
September 30, 2024
Efficiency ratio:
Non-interest expense
$
356,669
$
345,714
$
343,644
$
340,377
$
348,958
Less: Foreclosed property activity
1,535
541
517
(32)
(687)
Intangible assets amortization
8,966
9,093
9,237
9,681
8,491
Operating lease depreciation
3
9
16
121
197
FDIC special assessment
—
—
—
—
(1,544)
Strategic restructuring costs and other
—
—
—
—
22,169
Adjusted non-interest expense
$
346,165
$
336,071
$
333,874
$
330,607
$
320,332
Net interest income
$
631,667
$
621,182
$
612,192
$
608,468
$
589,883
Add: Tax-equivalent adjustment
14,258
13,870
13,611
13,664
13,659
Non-interest income
100,906
94,657
92,606
52,507
57,741
Other income (1)
9,234
10,528
11,032
6,564
7,448
Less: Operating lease depreciation
3
9
16
121
197
Gain (loss) on sale of investment securities, net
—
—
220
(56,886)
(19,597)
Exit of non-core operations
—
—
—
—
(15,977)
Adjusted income
$
756,062
$
740,228
$
729,205
$
737,968
$
704,108
Efficiency ratio
45.79%
45.40%
45.79%
44.80%
45.49%
Return on average tangible common stockholders’ equity:
Net income
$
261,217
$
258,848
$
226,917
$
177,766
$
192,985
Less: Preferred stock dividends
4,162
4,162
4,163
4,163
4,162
Add: Intangible assets amortization, tax-effected
6,534
6,627
6,732
7,648
6,708
Adjusted net income
$
263,589
$
261,313
$
229,486
$
181,251
$
195,531
Adjusted net income, annualized basis
$
1,054,356
$
1,045,252
$
917,944
$
725,004
$
782,124
Average stockholders’ equity
$
9,440,148
$
9,294,023
$
9,245,030
$
9,186,082
$
8,995,134
Less: Average preferred stock
283,979
283,979
283,979
283,979
283,979
Average goodwill and other intangible assets, net
3,180,111
3,188,946
3,198,123
3,207,554
3,238,115
Average tangible common stockholders’ equity
$
5,976,058
$
5,821,098
$
5,762,928
$
5,694,549
$
5,473,040
Return on average tangible common stockholders’ equity
17.64%
17.96%
15.93%
12.73%
14.29%
(1)Other income reflects a tax-equivalent adjustment on income generated from low-income housing tax credit investments.
