Webster Financial Corporation ("Webster") (NYSE:WBS), the holding company for Webster Bank, N.A., today announced net income available to common stockholders of $173.6 million, or $1.01 per diluted share, for the quarter ended December 31, 2024, compared to $181.2 million, or $1.05 per diluted share, for the quarter ended December 31, 2023.

Fourth quarter 2024 results include securities repositioning losses of $56.9 million, pre-tax, and a deferred tax asset valuation adjustment of $29.4 million. Excluding these items, adjusted earnings per diluted share would have been $1.43¹ for the quarter ended December 31, 2024, compared to $1.46 for the quarter ended December 31, 2023.

"Our financial performance for the quarter and full year 2024 illustrate the power and resiliency of Webster's business model" said John R. Ciulla, chairman and chief executive officer. "At the same time, we are thoughtfully investing to facilitate future growth."

Highlights for the fourth quarter of 2024:

Revenue of $661.0 million.
Period end loans and leases balance of $52.5 billion, up $0.6 billion or 1.1 percent from prior quarter.
Period end deposits balance of $64.8 billion, up $0.2 billion or 0.4 percent from prior quarter.
Provision for credit losses of $63.5 million.
Return on average assets of 0.91 percent; adjusted 1.27 percent¹.
Return on average tangible common equity of 12.73 percent¹; adjusted 17.73 percent¹.
Net interest margin of 3.39 percent, up 3 basis points from prior quarter.
Common equity tier 1 ratio of 11.50%².
Efficiency ratio of 44.80 percent¹.
Tangible common equity ratio of 7.45 percent¹.

"The actions we took in 2024 to enhance Webster's capital and liquidity, unique funding attributes and investments in people and technology fortify the base for our company's growth" said Neal Holland, executive vice president and chief financial officer.

¹ See "Non-GAAP to GAAP Reconciliations" section beginning on page 19.

² Presented as preliminary for December 31, 2024.

Consolidated financial performance:

Quarterly net interest income compared to the fourth quarter of 2023:

Net interest income was $608.5 million compared to $571.0 million.
Net interest margin was 3.39 percent compared to 3.42 percent. The yield on interest-earning assets decreased by 1 basis point, and the cost of interest-bearing liabilities remained flat.
Average interest-earning assets totaled $71.9 billion and increased by $4.4 billion, or 6.4 percent.
Average loans and leases totaled $52.3 billion and increased by $1.9 billion, or 3.8 percent.
Average deposits totaled $64.8 billion and increased by $4.8 billion, or 8.1 percent.

Quarterly provision for credit losses:

The provision for credit losses was $63.5 million in the quarter, contributing to a $1.8 million increase in the allowance for credit losses on loans and leases from the prior quarter. The provision for credit losses was $54.0 million in the prior quarter, and $36.0 million a year ago.
Net charge-offs were $60.9 million, compared to $35.4 million in the prior quarter, and $34.0 million a year ago. The ratio of net charge-offs to average loans and leases was 0.47 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 1.31 percent of total loans and leases, compared to 1.32 percent at September 30, 2024, and 1.25 percent at December 31, 2023. The allowance represented 149 percent of nonperforming loans and leases, compared to 162 percent at September 30, 2024, and 303 percent at December 31, 2023.

Quarterly non-interest income compared to the fourth quarter of 2023:

Total non-interest income was $52.5 million compared to $63.8 million, a decrease of $11.3 million. Total non-interest income includes $56.9 million and $16.8 million of losses on sales of investment securities for the fourth quarter of 2024 and 2023, respectively. Excluding these items, total non-interest income increased $28.8 million. The increase is primarily attributable to direct investment gains, a credit valuation adjustment, and the addition of Ametros.

Quarterly non-interest expense compared to the fourth quarter of 2023:

Total non-interest expense was $340.4 million compared to $377.2 million, a decrease of $36.8 million. In the fourth quarter of 2023, total non-interest expense included $47.2 million related to the FDIC special assessment and a net $30.7 million of merger related expenses. Excluding those charges, total non-interest expense increased $41.0 million. The increase is primarily attributable to the addition of Ametros and the related intangible amortization, higher performance-based incentives, investments in human capital and technology, and a contribution to the Webster Charitable Foundation.

Quarterly income taxes compared to the fourth quarter of 2023:

Income tax expense was $79.3 million compared to $36.2 million, and the effective tax rate was 30.9 percent compared to 16.3 percent. The higher tax expense and tax rate in the current period reflects a $29.4 million deferred tax asset valuation adjustment related to state and local net operating loss carryforwards, which impacted the rate by 11.4 percentage points. The lower effective tax rate in the period a year ago reflected the recognition of a discrete tax benefit attributable to tax return true-up adjustments, along with a lower level of pre-tax income in that period.

Investment securities:

Total investment securities, net were $17.5 billion, compared to $17.2 billion at September 30, 2024, and $16.0 billion at December 31, 2023. The carrying value of the available-for-sale portfolio included $712.9 million of net unrealized losses, compared to $486.1 million at September 30, 2024, and $708.7 million at December 31, 2023. The carrying value of the held-to-maturity portfolio does not reflect $991.2 million of net unrealized losses, compared to $677.0 million at September 30, 2024, and $810.2 million at December 31, 2023.

Loans and leases:

Total loans and leases were $52.5 billion, compared to $51.9 billion at September 30, 2024, and $50.7 billion at December 31, 2023. Compared to September 30, 2024, commercial loans and leases increased by $556.0 million, commercial real estate loans decreased by $300.3 million, residential mortgages increased by $277.1 million, and consumer loans increased by $25.5 million. Compared to a year ago, commercial loans and leases increased by $904.9 million, commercial real estate loans increased by $233.3 million, residential mortgages increased by $625.7 million, and consumer loans increased by $15.2 million.
Loan originations for the portfolio were $3.4 billion, compared to $2.8 billion in the prior quarter, and $3.2 billion a year ago.

Asset quality:

Total nonperforming loans and leases were $461.3 million, or 0.88 percent of total loans and leases, compared to $425.6 million, or 0.82 percent of total loans and leases, at September 30, 2024, and $209.5 million, or 0.41 percent of total loans and leases, at December 31, 2023.
Past due loans and leases were $88.6 million, compared to $108.9 million at September 30, 2024, and $46.6 million at December 31, 2023. The decrease from prior quarter is driven primarily by commercial non-mortgage and residential mortgages, partially offset by commercial real estate.

Deposits and borrowings:

Total deposits were $64.8 billion, compared to $64.5 billion at September 30, 2024, and $60.8 billion at December 31, 2023. During the quarter, seasonal declines in municipal deposits of $1.1 million were offset by short-duration time deposits. Core deposits to total deposits¹ were 87.3 percent, compared to 88.5 percent at September 30, 2024, and 86.1 percent at December 31, 2023. The loan to deposit ratio was 81.1 percent, compared to 80.5 percent at September 30, 2024, and 83.5 percent at December 31, 2023.
Total borrowings were $3.4 billion, compared to $4.1 billion at September 30, 2024, and $3.9 billion at December 31, 2023.

Capital:

The return on average common stockholders' equity and the return on average tangible common stockholders' equity¹ were 7.80 percent and 12.73 percent, respectively, compared to 8.67 percent and 14.29 percent, respectively, in the third quarter of 2024, and 9.03 percent and 14.49 percent, respectively, in the fourth quarter of 2023.
The adjusted return on average tangible common stockholders' equity¹ was 17.73 percent, compared to 17.28 percent in the third quarter of 2024, and 19.83 percent in the fourth quarter of 2023.
The tangible equity¹ and tangible common equity¹ ratios were 7.82 percent and 7.45 percent, respectively, compared to 7.85 percent and 7.48 percent, respectively, at September 30, 2024, and 8.12 percent and 7.73 percent, respectively, at December 31, 2023. The common equity tier 1² ratio was 11.50 percent, compared to 11.25 percent at September 30, 2024, and 11.11 percent at December 31, 2023.
Book value and tangible book value per common share¹ were $51.63 and $32.95, respectively, compared to $52.00 and $33.26, respectively, at September 30, 2024, and $48.87 and $32.39, respectively, at December 31, 2023.

¹ See "Non-GAAP to GAAP Reconciliations" section beginning on page 19.

² Presented as preliminary for December 31, 2024, and actual for the remaining periods.

Reportable segments:

Commercial Banking

Webster's Commercial Banking segment serves businesses that have more than $10 million of revenue through its asset based lending, commercial services, commercial real estate, middle market, private banking, sponsor and specialty, verticals, regional banking, and treasury management business units. At December 31, 2024, Commercial Banking had $40.6 billion in loans and leases and $16.3 billion in deposits, as well as a combined $3.0 billion in assets under administration and management.

Commercial Banking Operating Results:

				Percent
	Three months ended December 31,			Favorable/
(In thousands)		2024	2023	(Unfavorable)
Net interest income		$330,392	$351,942		(6.1) %
Non-interest income		41,026	32,711		25.4
Operating revenue		371,418	384,653		(3.4)
Non-interest expense		106,762	97,299		(9.7)
Pre-tax, pre-provision net revenue		$264,656	$287,354		(7.9)


		At December 31,		Percent
(In millions)		2024	2023	Increase
Loans and leases		$40,616	$39,481		2.9 %
Deposits		16,252	16,054		1.2
AUA / AUM (off balance sheet)		2,966	2,911		1.9

Pre-tax, pre-provision net revenue decreased $22.7 million, to $264.7 million, in the quarter as compared to prior year. Net interest income decreased $21.5 million, to $330.4 million, primarily driven by lower loan yields coupled with lower deposit interest spread. Non-interest income increased $8.3 million, to $41.0 million, primarily driven by direct investment gains, higher deposit and cash management fees, and increased fees from trust and investment services, partially offset by lower fees from client hedging activities and lower loan servicing fees. Non-interest expense increased $9.5 million, to $106.8 million, primarily driven by continued investments in technology and increased compensation-related expenses.

Healthcare Financial Services

Webster's Healthcare Financial Services segment is comprised of HSA Bank and Ametros, which was acquired in the first quarter of 2024. This segment offers consumer-directed healthcare solutions that include health savings accounts, health reimbursement arrangements, administration of medical insurance claim settlements, flexible spending accounts, and commuter benefits. Accounts are distributed nationwide directly to employers and individual consumers, as well as through national and regional insurance carriers, benefit consultants, and financial advisors. At December 31, 2024, Healthcare Financial Services had $15.3 billion in total footings comprising $10.0 billion in deposits and $5.3 billion in assets under administration through linked investment accounts.

Healthcare Financial Services Operating Results:

				Percent
	Three months ended December 31,			Favorable/
(In thousands)		2024	2023	(Unfavorable)
Net interest income		$95,185	$78,036		22.0 %
Non-interest income		25,140	20,224		24.3
Operating revenue		120,325	98,260		22.5
Non-interest expense		56,672	41,947		(35.1)
Pre-tax, net revenue		$63,653	$56,313		13.0


		At December 31,		Percent
(Dollars in millions)		2024	2023	Increase
Number of accounts (thousands)		3,326	3,184		4.5 %

Deposits		$9,967	$8,288		20.3
Linked investment accounts (off balance sheet)		5,322	4,642		14.6
Total footings		$15,289	$12,930		18.2

Pre-tax net revenue increased $7.3 million, to $63.7 million, in the quarter as compared to prior year. Net interest income increased $17.1 million, to $95.2 million, primarily due to $12.0 million from Ametros coupled with deposit growth at HSA Bank. Non-interest income increased $4.9 million, to $25.1 million, primarily due to $6.1 million from Ametros, offset by a decrease of $1.2 million from HSA Bank. The decrease in HSA Bank was the net result of lower customer account fees partially offset by higher interchange revenue. Non-interest expense increased $14.7 million, to $56.7 million, primarily due to $11.4 million from Ametros. HSA Bank expenses were $3.3 million higher due to higher service contract expense related to account growth and support costs.

Consumer Banking

Webster's Consumer Banking segment serves consumer and business banking customers primarily throughout southern New England and the New York metro and suburban markets. Consumer Banking is comprised of the residential and consumer lending, private client, and business banking business units, as well as a distribution network consisting of 196 banking centers and 347 ATMs, a customer care center, and a full range of digital and mobile-based banking services. Additionally, Webster Investment Services provides investment services to consumers and small business owners within Webster's targeted markets and retail footprint. At December 31, 2024, Consumer Banking had $11.9 billion in loans and $27.3 billion in deposits, as well as $8.0 billion in assets under administration.

Consumer Banking Operating Results:


	Three months ended December 31,			Percent
(In thousands)		2024	2023	(Unfavorable)
Net interest income		$202,165	$213,913		(5.5) %
Non-interest income		26,969	27,426		(1.7)
Operating revenue		229,134	241,339		(5.1)
Non-interest expense		119,123	116,413		(2.3)
Pre-tax, pre-provision net revenue		$110,011	$124,926		(11.9)


		At December 31,		Percent
(In millions)		2024	2023	Increase
Loans		$11,886	$11,235		5.8 %
Deposits		27,333	26,252		4.1
AUA (off balance sheet)		7,997	7,876		1.5

Pre-tax, pre-provision net revenue decreased $14.9 million, to $110.0 million, in the quarter as compared to prior year. Net interest income decreased $11.7 million, to $202.2 million, primarily driven by higher rates paid on deposits, partially offset by higher loan yields, as well as loan and deposit balance growth. Non-interest income decreased $0.5 million, to $27.0 million, primarily driven by lower loan servicing fees and a decrease in gains on sales of loans, partially offset by increased deposit related fees and higher miscellaneous fee income. Non-interest expense increased $2.7 million, to $119.1 million, primarily driven by continued investments in technology, partially offset by lower overall operating expenses.

***

Webster Financial Corporation (NYSE:WBS) is the holding company for Webster Bank, N.A. Webster is a leading commercial bank in the Northeast that provides a wide range of digital and traditional financial solutions across three differentiated lines of business: Commercial Banking, Consumer Banking, and Healthcare Financial Services, one of the country's largest providers of employee benefit solutions and administrator of medical insurance claim settlements. Headquartered in Stamford, CT, Webster is a values-driven organization with $79 billion in assets. Its core footprint spans the northeastern U.S. from New York to Massachusetts, with certain businesses operating 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 fourth quarter 2024 earnings announcement will be held today, Friday, January 17, 2025, at 9:00 a.m. Eastern Time. To listen to the live call, please dial 888-330-2446, or 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 January 17, 2025. To access the replay, dial 800-770-2030, or 609-800-9909 for international callers. The replay conference ID number is 8607257.

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," "targeted," "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, expense savings, 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. 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 mitigation efforts taken by government agencies in response to volatility 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, and the impact they may have on Webster or its customers; volatility and disruption in national and international financial markets, including as a result of geopolitical conflict; the impact of unrealized losses 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; inflation, monetary fluctuations, and changes in interest rates, including the impact of such changes on economic conditions, customer behavior, funding costs, and Webster's loans and leases and securities portfolios; possible changes in governmental monetary and fiscal policies, including, but not limited to, the Federal Reserve policies in connection with continued inflationary pressures; the effects of any U.S. federal government shutdown; the impact of any new regulatory, policy, or enforcement developments resulting from the change in U.S. presidential administration; the timely development and acceptance of 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; performance by 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 nonperforming assets, charge-offs, and delinquencies; changes in our 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 the impacts of recently adopted accounting guidance; legal and regulatory developments, including any due to judicial decisions, the resolution of legal proceedings or regulatory or other governmental inquiries, and the results of regulatory examinations or reviews; Webster's ability to navigate differing environmental, social, governmental, and sustainability concerns among its stakeholders and other activists; Webster's ability to assess and monitor the effect 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, 2023, 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.

Non-GAAP Financial Measures

In addition to results presented in accordance with GAAP, this press release contains certain non-GAAP financial measures. A reconciliation of net income, return on average tangible common stockholders' equity, and other performance ratios, in each case as adjusted, is included in the accompanying selected financial highlights table.

Webster believes that providing certain non-GAAP financial measures provides investors with information useful in understanding its financial performance, performance trends, and financial position. Webster utilizes these measures for internal planning and forecasting purposes. Webster, as well as securities analysts, investors, and other interested parties, also use these measures to compare peer company operating performance. Webster believes that its presentation and discussion, together with the accompanying reconciliations, provides additional clarity of factors and trends affecting its business and allows investors to view performance in a manner similar to management.

The efficiency ratio, which represents the costs expended to generate a dollar of revenue, is calculated excluding certain non-operational items. The return on average tangible common stockholders' equity ("ROATCE") represents net income available to common stockholders, adjusted for the tax-effected amortization of intangible assets, as a percentage of average stockholders' equity less average preferred stock and average goodwill and net intangible assets. The tangible equity ratio represents stockholders' equity less goodwill and net intangible assets divided by total assets less goodwill and net intangible assets. The tangible common equity ratio represents stockholders' equity less preferred stock and goodwill and net intangible assets divided by total assets less goodwill and net intangible assets. Tangible book value per common share represents stockholders' equity less preferred stock and goodwill and net intangible assets divided by common shares outstanding at the end of the period. Core deposits reflect total deposits less certificates of deposit and brokered certificates of deposit. Adjusted pre-tax net income, adjusted net income available to common stockholders, adjusted diluted earnings per share ("EPS"), adjusted ROATCE, and adjusted return on average assets ("ROAA") are calculated excluding losses on sales of investment securities, which have been tax-effected, and a deferred tax valuation adjustment.

These non-GAAP measures should not be considered a substitute for GAAP basis measures and results, and Webster strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.

Refer the tables beginning on page 19 for Non-GAAP to GAAP reconciliations.

WEBSTER FINANCIAL CORPORATION Selected Financial Highlights (unaudited)
		At or for the Three Months Ended
(In thousands, except per share data)		December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023

Income and performance ratios:
Net income	$	177,766		$	192,985		$	181,633		$	216,323		$	185,393
Net income available to common stockholders		173,603			188,823			177,471			212,160			181,230
Earnings per diluted common share		1.01			1.10			1.03			1.23			1.05
Return on average assets (annualized)		0.91	%		1.01	%		0.96	%		1.15	%		1.01	%
Return on average tangible common stockholders' equity (annualized)⁽¹⁾		12.73			14.29			14.17			16.30			14.49
Return on average common stockholders' equity (annualized)		7.80			8.67			8.40			10.01			9.03
Non-interest income as a percentage of total revenue		7.94			8.92			6.88			14.89			10.05

Asset quality:
Allowance for credit losses on loans and leases	$	689,566		$	687,798		$	669,355		$	641,442		$	635,737
Nonperforming assets		461,751			427,274			374,884			289,254			218,600
Allowance for credit losses on loans and leases / total loans and leases		1.31	%		1.32	%		1.30	%		1.26	%		1.25	%
Net charge-offs / average loans and leases (annualized)		0.47			0.27			0.26			0.29			0.27
Nonperforming loans and leases / total loans and leases		0.88			0.82			0.72			0.56			0.41
Nonperforming assets / total loans and leases plus other real estate owned and repossessed assets		0.88			0.82			0.73			0.57			0.43
Allowance for credit losses on loans and leases / nonperforming loans and leases		149.47			161.60			181.48			226.17			303.39

Other ratios:
Tangible equity⁽¹⁾		7.82	%		7.85	%		7.56	%		7.54	%		8.12	%
Tangible common equity ⁽¹⁾		7.45			7.48			7.18			7.15			7.73
Tier 1 risk-based capital ⁽²⁾		12.01			11.77			11.09			11.08			11.62
Total risk-based capital ⁽²⁾		14.20			14.06			13.28			13.21			13.72
Common equity tier 1 risk-based capital ⁽²⁾		11.50			11.25			10.59			10.57			11.11
Stockholders' equity / total assets		11.56			11.58			11.46			11.49			11.60
Net interest margin		3.39			3.36			3.32			3.35			3.42
Efficiency ratio ⁽¹⁾		44.80			45.49			46.22			45.25			43.04

Equity and share related:
Common stockholders' equity	$	8,849,235		$	8,914,071		$	8,525,289		$	8,463,519		$	8,406,017
Book value per common share		51.63			52.00			49.74			49.07			48.87
Tangible book value per common share⁽¹⁾		32.95			33.26			30.82			30.22			32.39
Common stock closing price		55.22			46.61			43.59			50.77			50.76
Dividends declared per common share		0.40			0.40			0.40			0.40			0.40
Common shares issued and outstanding		171,391			171,428			171,402			172,464			172,022
Weighted-average common shares outstanding - Basic		169,589			169,569			169,675			170,445			170,415
Weighted-average common shares outstanding - Diluted		170,005			169,894			169,937			170,704			170,623

⁽¹⁾ See "Non-GAAP to GAAP Reconciliations" section beginning on page 19.
⁽²⁾ Presented as preliminary for December 31, 2024, and actual for the remaining periods.

WEBSTER FINANCIAL CORPORATION Consolidated Balance Sheets (unaudited)
(In thousands)		December 31, 2024			September 30, 2024			December 31, 2023
Assets:
Cash and due from banks	$	388,060		$	721,261		$	429,323
Interest-bearing deposits		1,686,374			2,476,290			1,286,472
Investment securities:
Available-for-sale		9,006,600			8,594,978			8,959,729
Held-to-maturity, net		8,444,191			8,565,936			7,074,588
Total investment securities, net		17,450,791			17,160,914			16,034,317
Loans held for sale		27,634			117,615			6,541
Loans and leases:
Commercial		20,676,965			20,120,992			19,772,102
Commercial real estate		21,391,036			21,691,377			21,157,732
Residential mortgages		8,853,669			8,576,612			8,227,923
Consumer		1,583,498			1,558,034			1,568,295
Total loans and leases		52,505,168			51,947,015			50,726,052
Allowance for credit losses on loans and leases		(689,566	)		(687,798	)		(635,737	)
Total loans and leases, net		51,815,602			51,259,217			50,090,315
Federal Home Loan Bank and Federal Reserve Bank stock		321,343			360,795			326,882
Premises and equipment, net		406,963			411,070			429,561
Goodwill and other intangible assets, net		3,202,369			3,212,050			2,834,600
Cash surrender value of life insurance policies		1,251,622			1,247,624			1,247,938
Deferred tax assets, net		316,856			273,174			369,212
Accrued interest receivable and other assets		2,157,459			2,213,890			1,890,088
Total assets	$	79,025,073		$	79,453,900		$	74,945,249

Liabilities and Stockholders' Equity:
Deposits:
Demand	$	10,316,501		$	10,744,524		$	10,732,516
Health savings accounts		8,951,031			8,951,383			8,287,889
Interest-bearing checking		9,834,790			10,016,651			8,994,095
Money market		20,433,250			20,460,382			17,662,826
Savings		6,982,554			6,921,459			6,642,499
Certificates of deposit		6,041,329			6,020,031			5,574,048
Brokered certificates of deposit		2,193,625			1,400,000			2,890,411
Total deposits		64,753,080			64,514,430			60,784,284
Securities sold under agreements to repurchase and other borrowings		344,168			100,232			458,387
Federal Home Loan Bank advances		2,110,108			3,110,205			2,360,018
Long-term debt		909,185			910,963			1,048,820
Accrued expenses and other liabilities		1,775,318			1,620,020			1,603,744
Total liabilities		69,891,859			70,255,850			66,255,253
Preferred stock		283,979			283,979			283,979
Common stockholders' equity		8,849,235			8,914,071			8,406,017
Total stockholders' equity		9,133,214			9,198,050			8,689,996
Total liabilities and stockholders' equity	$	79,025,073		$	79,453,900		$	74,945,249

WEBSTER FINANCIAL CORPORATION Consolidated Statements of Income (unaudited)
		Three Months Ended December 31,						Twelve Months Ended December 31,
(In thousands, except per share data)		2024			2023			2024			2023
Interest income:
Interest and fees on loans and leases	$	783,140		$	789,423		$	3,182,466		$	3,071,378
Interest on investment securities		189,801			128,924			674,935			450,888
Loans held for sale		2,836			280			13,911			734
Other interest and dividends		19,310			14,520			55,974			105,260
Total interest income		995,087			933,147			3,927,286			3,628,260
Interest expense:
Deposits		358,895			325,793			1,427,204			1,021,418
Borrowings		27,724			36,333			161,695			269,573
Total interest expense		386,619			362,126			1,588,899			1,290,991
Net interest income		608,468			571,021			2,338,387			2,337,269
Provision for credit losses		63,500			36,000			222,000			150,747
Net interest income after provision for loan and lease losses		544,968			535,021			2,116,387			2,186,522
Non-interest income:
Deposit service fees		38,665			37,459			161,144			169,318
Loan and lease related fees		18,770			21,362			76,384			84,861
Wealth and investment services		8,387			7,767			33,234			28,999
Cash surrender value of life insurance policies		7,387			6,587			27,712			26,228
(Loss) on sale of investment securities, net		(56,886	)		(16,825	)		(136,224	)		(33,620	)
Other income		36,184			7,465			89,649			38,551
Total non-interest income		52,507			63,815			251,899			314,337
Non-interest expense:
Compensation and benefits		192,668			184,914			762,794			711,752
Occupancy		18,740			18,478			72,161			77,520
Technology and equipment		47,182			46,486			195,017			197,928
Marketing		6,139			5,176			18,751			18,622
Professional and outside services		15,205			18,804			58,253			107,497
Intangible assets amortization		9,681			8,618			36,082			36,207
Deposit insurance		16,069			58,725			68,912			98,081
Other expenses		34,693			36,020			139,309			168,748
Total non-interest expense		340,377			377,221			1,351,279			1,416,355
Income before income taxes		257,098			221,615			1,017,007			1,084,504
Income tax expense		79,332			36,222			248,300			216,664
Net income		177,766			185,393			768,707			867,840
Preferred stock dividends		(4,163	)		(4,163	)		(16,650	)		(16,650	)
Net income available to common stockholders	$	173,603		$	181,230		$	752,057		$	851,190

Weighted-average common shares outstanding - Diluted		170,005			170,623			170,192			171,883

Earnings per common share:
Basic	$	1.01		$	1.05		$	4.38		$	4.91
Diluted		1.01			1.05			4.37			4.91

WEBSTER FINANCIAL CORPORATION Five Quarter Consolidated Statements of Income (unaudited)
		Three Months Ended
(In thousands, except per share data)		December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
Interest income:
Interest and fees on loans and leases	$	783,140		$	809,184		$	798,097		$	792,045		$	789,423
Interest on investment securities		189,801			176,722			160,827			147,585			128,924
Loans held for sale		2,836			5,400			5,593			82			280
Other interest and dividends		19,310			12,757			11,769			12,138			14,520
Total interest income		995,087			1,004,063			976,286			951,850			933,147
Interest expense:
Deposits		358,895			371,075			361,263			335,971			325,793
Borrowings		27,724			43,105			42,726			48,140			36,333
Total interest expense		386,619			414,180			403,989			384,111			362,126
Net interest income		608,468			589,883			572,297			567,739			571,021
Provision for credit losses		63,500			54,000			59,000			45,500			36,000
Net interest income after provision for loan and lease losses		544,968			535,883			513,297			522,239			535,021
Non-interest income:
Deposit service fees		38,665			38,863			41,027			42,589			37,459
Loan and lease related fees		18,770			18,513			19,334			19,767			21,362
Wealth and investment services		8,387			8,367			8,556			7,924			7,767
Cash surrender value of life insurance policies		7,387			8,020			6,359			5,946			6,587
(Loss) on sale of investment securities, net		(56,886	)		(19,597	)		(49,915	)		(9,826	)		(16,825	)
Other income		36,184			3,575			16,937			32,953			7,465
Total non-interest income		52,507			57,741			42,298			99,353			63,815
Non-interest expense:
Compensation and benefits		192,668			194,736			186,850			188,540			184,914
Occupancy		18,740			18,879			15,103			19,439			18,478
Technology and equipment		47,182			56,696			45,303			45,836			46,486
Marketing		6,139			4,224			4,107			4,281			5,176
Professional and outside services		15,205			16,001			14,066			12,981			18,804
Intangible assets amortization		9,681			8,491			8,716			9,194			8,618
Deposit insurance		16,069			13,555			15,065			24,223			58,725
Other expenses		34,693			36,376			36,811			31,429			36,020
Total non-interest expense		340,377			348,958			326,021			335,923			377,221
Income before income taxes		257,098			244,666			229,574			285,669			221,615
Income tax expense		79,332			51,681			47,941			69,346			36,222
Net income		177,766			192,985			181,633			216,323			185,393
Preferred stock dividends		(4,163	)		(4,162	)		(4,162	)		(4,163	)		(4,163	)
Net income available to common stockholders	$	173,603		$	188,823		$	177,471		$	212,160		$	181,230

Weighted-average common shares outstanding - Diluted		170,005			169,894			169,937			170,704			170,623

Earnings per common share:
Basic	$	1.01		$	1.10		$	1.03		$	1.23		$	1.05
Diluted		1.01			1.10			1.03			1.23			1.05

WEBSTER FINANCIAL CORPORATION Consolidated Average Balances, Interest, Yields/ Rates, and Net Interest Margin on a Fully Tax-equivalent Basis (unaudited)
		Three Months Ended December 31,
		2024							2023
(Dollars in thousands)		Average balance		Interest		Yield/rate			Average balance		Interest		Yield/rate
Assets:
Interest-earning assets:
Loans and leases	$	52,255,431	$	794,271		5.97	%	$	50,352,340	$	800,679		6.24	%
Investment securities ⁽¹⁾		17,982,632		192,334		4.28			16,194,457		135,498		3.35
Federal Home Loan and Federal Reserve Bank stock		301,218		4,732		6.25			308,505		5,581		7.18
Interest-bearing deposits		1,201,613		14,578		4.75			649,104		8,939		5.39
Loans held for sale		122,449		2,836		9.27			7,130		280		n/m
Total interest-earning assets		71,863,343	$	1,008,751		5.53	%		67,511,536	$	950,977		5.54	%
Non-interest-earning assets ⁽¹⁾		6,493,521							5,620,527
Total assets	$	78,356,864						$	73,132,063

Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Demand deposits	$	10,568,678	$	-		-	%	$	11,067,121	$	-		-	%
Health savings accounts		8,919,071		3,485		0.16			8,219,431		3,123		0.15
Interest-bearing checking, money market and savings		37,464,574		271,010		2.88			33,156,966		239,875		2.87
Certificates of deposit and brokered deposits		7,863,067		84,400		4.27			7,538,131		82,795		4.36
Total deposits		64,815,390		358,895		2.20			59,981,649		325,793		2.15

Securities sold under agreements to repurchase and other borrowings		191,265		853		1.74			221,437		1,162		2.05
Federal Home Loan Bank advances		1,535,140		19,063		4.86			1,815,493		25,659		5.53
Long-term debt ⁽¹⁾		886,648		7,808		3.52			1,020,901		9,512		3.73
Total borrowings		2,613,053		27,724		4.18			3,057,831		36,333		4.68
Total interest-bearing liabilities		67,428,443	$	386,619		2.28	%		63,039,480	$	362,126		2.28	%
Non-interest-bearing liabilities ⁽¹⁾		1,742,339							1,779,785
Total liabilities		69,170,782							64,819,265

Preferred stock		283,979							283,979
Common stockholders' equity		8,902,103							8,028,819
Total stockholders' equity		9,186,082							8,312,798
Total liabilities and stockholders' equity	$	78,356,864						$	73,132,063
Tax-equivalent net interest income				622,132							588,851
Less: Tax-equivalent adjustments				(13,664	)						(17,830	)
Net interest income			$	608,468						$	571,021
Net interest margin						3.39	%						3.42	%

⁽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 December 31, 2023, to reflect a change in presentation being applied retrospectively. Specifically, adjustments were made to exclude unsettled trades of $142.4 million and available-for-sale unrealized losses of $1.1 billion from investment securities, and to exclude a $28.8 million basis adjustment related to a de-designated fair value hedge from long-term debt. Rather, effective as of December 31, 2024, these amounts are being presented in non-interest-earning assets and non-interest-bearing liabilities, respectively. There was no change to the related yields/rates, net interest income, or net interest margin that had been previously disclosed.

WEBSTER FINANCIAL CORPORATION Consolidated Average Balances, Interest, Yields/ Rates, and Net Interest Margin on a Fully Tax-equivalent Basis (unaudited)
		Twelve Months Ended December 31,
		2024							2023
(Dollars in thousands)		Average balance		Interest		Yield/rate			Average balance		Interest		Yield/rate
Assets:
Interest-earning assets:
Loans and leases	$	51,597,443	$	3,224,653		6.25	%	$	50,637,569	$	3,113,709		6.15	%
Investment securities ⁽¹⁾		17,356,753		690,265		3.98			15,626,684		477,496		3.06
Federal Home Loan and Federal Reserve Bank stock		330,418		18,633		5.64			408,673		24,785		6.06
Interest-bearing deposits		723,688		37,341		5.16			1,564,255		80,475		5.14
Loans held for sale		143,812		13,911		9.67			28,710		734		2.56
Total interest-earning assets		70,152,114	$	3,984,803		5.68	%		68,265,891	$	3,697,199		5.42	%
Non-interest-earning assets ⁽¹⁾		6,461,020							5,557,991
Total assets	$	76,613,134						$	73,823,882

Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Demand deposits	$	10,387,807	$	-		-	%	$	11,596,949	$	-		-	%
Health savings accounts		8,650,485		13,139		0.15			8,249,332		12,366		0.15
Interest-bearing checking, money market and savings		35,789,961		1,070,949		2.99			31,874,457		756,521		2.37
Certificates of deposit and brokered deposits		7,597,612		343,116		4.52			6,531,610		252,531		3.87
Total deposits		62,425,865		1,427,204		2.29			58,252,348		1,021,418		1.75

Securities sold under agreements to repurchase and other borrowings		196,328		4,113		2.09			378,171		9,102		2.41
Federal Home Loan Bank advances		2,296,048		125,329		5.46			4,275,394		222,537		5.21
Long-term debt ⁽¹⁾		903,603		32,253		3.57			1,027,869		37,934		3.69
Total borrowings		3,395,979		161,695		4.76			5,681,434		269,573		4.74
Total interest-bearing liabilities		65,821,844	$	1,588,899		2.41	%		63,933,782	$	1,290,991		2.02	%
Non-interest-bearing liabilities ⁽¹⁾		1,871,615							1,566,145
Total liabilities		67,693,459							65,499,927

Preferred stock		283,979							283,979
Common stockholders' equity		8,635,696							8,039,976
Total stockholders' equity		8,919,675							8,323,955
Total liabilities and stockholders' equity	$	76,613,134						$	73,823,882
Tax-equivalent net interest income				2,395,904							2,406,208
Less: Tax-equivalent adjustments				(57,517	)						(68,939	)
Net interest income			$	2,338,387						$	2,337,269
Net interest margin						3.42	%						3.52	%

⁽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 twelve months ended December 31, 2023, to reflect a change in presentation being applied retrospectively. Specifically, adjustments were made to exclude unsettled trades of $108.9 million and available-for-sale unrealized losses of $895.8 million from investment securities, and to exclude a $30.8 million basis adjustment related to a de-designated fair value hedge from long-term debt. Rather, effective as of December 31, 2024, these amounts are being presented in non-interest-earning assets and non-interest-bearing liabilities, respectively. There was no change to the related yields/rates, net interest income, or net interest margin that had been previously disclosed.

WEBSTER FINANCIAL CORPORATION Five Quarter Loans and Leases (unaudited)
(Dollars in thousands)		December 31, 2024			September 30, 2024			June 30, 2024		March 31, 2024		December 31, 2023
Total loans and leases (actual):
Commercial non-mortgage	$	19,272,958		$	18,657,089		$	18,021,758	$	17,976,128	$	18,214,261
Asset-based lending		1,404,007			1,463,903			1,470,675		1,492,886		1,557,841
Commercial real estate		21,391,036			21,691,377			22,277,813		21,869,502		21,157,732
Residential mortgages		8,853,669			8,576,612			8,284,297		8,226,154		8,227,923
Consumer		1,583,498			1,558,034			1,518,922		1,533,972		1,568,295
Total loans and leases		52,505,168			51,947,015			51,573,465		51,098,642		50,726,052
Allowance for credit losses on loans and leases		(689,566	)		(687,798	)

Webster Reports Fourth Quarter 2024 EPS of $1.01; Adjusted EPS of $1.43