Webster Financial Corporation ("Webster") (NYSE:WBS), the holding company for Webster Bank, N.A., today announced net income applicable to common stockholders of $251.7 million, or $1.52 per diluted share, for the quarter ended June 30, 2025, compared to $175.5 million, or $1.03 per diluted share, for the quarter ended June 30, 2024.

"Webster produced impressive financial and strategic results this quarter," said John R. Ciulla, chairman and chief executive officer. "These accomplishments bode well for Webster's future success, as we realize exciting new opportunities to grow our business."

Highlights for the second quarter of 2025:

Revenue of $715.8 million.
Period end loans and leases balance of $53.7 billion, up $0.6 billion, or 1.2 percent from prior quarter.
Period end deposits balance of $66.3 billion, up $0.7 billion, or 1.1 percent, from prior quarter.
Provision for credit losses of $46.5 million.
Return on average assets of 1.29 percent.
Return on average tangible common equity of 17.96 percent¹.
Net interest margin of 3.44 percent, down 4 basis points from prior quarter.
Common equity tier 1 ratio of 11.33 percent².
Efficiency ratio of 45.40 percent¹.
Tangible common equity ratio of 7.46 percent¹.

"In the second quarter, Webster generated solid growth and returns, while at the same time maintaining our strong operating position," said Neal Holland, senior executive vice president and chief financial officer. "Our asset quality metrics improved, we returned capital to shareholders, and continue to invest for future growth."

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

² Presented as preliminary for June 30, 2025.

Consolidated financial performance:

Quarterly net interest income compared to the second quarter of 2024:

Net interest income was $621.2 million, compared to $572.3 million.
Net interest margin¹ was 3.44 percent, compared to 3.39 percent. The yield on interest-earning assets decreased by 21 basis points, and the cost of deposits and interest-bearing liabilities decreased by 31 basis points.
Average interest-earning assets totaled $74.0 billion, an increase of $4.4 billion, or 6.4 percent.
Average loans and leases totaled $53.3 billion, an increase of $1.8 billion, or 3.6 percent.
Average deposits totaled $66.0 billion, an increase of $4.2 billion, or 6.9 percent.

Quarterly provision for credit losses:

The provision for credit losses was $46.5 million, compared to $77.5 million in the prior quarter, and $59.0 million a year ago.
Net charge-offs were $36.4 million, compared to $55.0 million in the prior quarter, and $33.1 million a year ago. The ratio of net charge-offs to average loans and leases was 0.27 percent, compared to 0.42 percent in the prior quarter, and 0.26 percent a year ago.
The allowance for credit losses on loans and leases represented 1.35 percent of total loans and leases, compared to 1.34 percent at March 31, 2025, and 1.30 percent at June 30, 2024.
The allowance for credit losses on loans and leases represented 135 percent of non-performing loans and leases, compared to 126 percent at March 31, 2025, and 181 percent at June 30, 2024.

Quarterly non-interest income compared to the second quarter of 2024:

Total non-interest income was $94.7 million, compared to $42.3 million, an increase of $52.4 million. In the second quarter of 2024, total non-interest income included losses on sale of investment securities of $49.9 million. Excluding this item, total non-interest income increased $2.5 million. The increase is primarily driven by increased bank owned life insurance, direct investment gains, and Healthcare Financial Services income, partially offset by lower loan and lease related fees.

¹ As of the first quarter of 2025, Webster changed the methodology used to annualize net interest income in its quarterly and year to date net interest margin calculation. Net interest margin for the prior periods has been recast.

Quarterly non-interest expense compared to the second quarter of 2024:

Total non-interest expense was $345.7 million, compared to $326.0 million, an increase of $19.7 million. The increase is primarily driven by investments in human capital and risk management infrastructure.

Quarterly income taxes compared to the second quarter of 2024:

Income tax expense was $64.8 million, compared to $47.9 million, and the effective tax rate was 20.0 percent, compared to 20.9 percent. The lower effective tax rate in the current quarter reflects the recognition of a $3.9 million discrete benefit, compared to $0.3 million a year ago.

Investment securities:

Total investment securities, net, were $17.8 billion, compared to $17.7 billion at March 31, 2025, and $16.4 billion at June 30, 2024. The carrying value of the available-for-sale portfolio included $568.3 million of net unrealized losses, compared to $580.4 million at March 31, 2025, and $772.2 million at June 30, 2024. The carrying value of the held-to-maturity portfolio does not reflect $901.6 million of net unrealized losses, compared to $893.3 million at March 31, 2025, and $964.5 million at June 30, 2024.

Loans and leases:

Total loans and leases were $53.7 billion, compared to $53.1 billion at March 31, 2025, and $51.6 billion at June 30, 2024. Compared to March 31, 2025, commercial loans and leases increased by $412.3 million, commercial real estate loans decreased by $24.4 million, residential mortgages increased by $209.4 million, and consumer loans increased by $18.4 million. Compared to June 30, 2024, commercial loans and leases increased by $1.8 billion, commercial real estate loans decreased by $919.0 million, residential mortgages increased by $1.0 billion, and consumer loans increased by $168.7 million.
Loan originations for the portfolio were $3.8 billion, compared to $2.7 billion in the prior quarter, and $3.0 billion a year ago.

Asset quality:

Total non-performing loans and leases were $534.5 million, compared to $564.4 million at March 31, 2025, and $368.8 million at June 30, 2024. The ratio of total non-performing loans and leases to total loans and leases was 1.00 percent, compared to 1.06 percent at March 31, 2025, and 0.72 percent at June 30, 2024.
Past due loans and leases were $54.8 million, compared to $87.2 million at March 31, 2025, and $166.3 million at June 30, 2024. The decrease from prior quarter is primarily driven by commercial real estate, commercial non-mortgage, and residential mortgages.

Deposits and borrowings:

Total deposits were $66.3 billion, compared to $65.6 billion at March 31, 2025, and $62.3 billion at June 30, 2024. The ratio of core deposits to total deposits¹ was 88.1 percent, compared to 88.5 percent at March 31, 2025, and 87.5 percent at June 30, 2024. The loan to deposit ratio was 80.9 percent, compared to 80.9 percent at March 31, 2025, and 82.8 percent at June 30, 2024.
Total borrowings were $4.6 billion, compared to $3.9 billion at March 31, 2025, and $4.0 billion at June 30, 2024.

Capital:

The return on average common stockholders' equity and the return on average tangible common stockholders' equity¹ were 11.31 percent and 17.96 percent, respectively, compared to 9.94 percent and 15.93 percent, respectively, in the prior quarter, and 8.40 percent and 14.17 percent, respectively, a year ago.
The tangible equity¹ and tangible common equity¹ ratios were 7.82 percent and 7.46 percent, respectively, compared to 7.80 percent and 7.43 percent, respectively, at March 31, 2025, and 7.56 percent and 7.18 percent, respectively, at June 30, 2024.
The common equity tier 1² ratio was 11.33 percent, compared to 11.25 percent at March 31, 2025, and 10.59 percent at June 30, 2024.
Book value per common share and tangible book value per common share¹ were $54.19 and $35.13, respectively, compared to $52.91 and $33.97, respectively, at March 31, 2025, and $49.74 and $30.82, respectively, at June 30, 2024.

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

² Presented as preliminary for June 30, 2025, and actual for the remaining periods.

Reportable segments:

Commercial Banking

Webster's Commercial Banking segment delivers financial solutions both nationally and regionally to a wide range of companies, investors, government entities, and other public and private institutions. Commercial Banking helps its clients achieve their business and financial goals with expertise in Commercial & Institutional Lending, Commercial Real Estate, Capital Markets, Capital Finance, and Treasury Management. Its Private Banking team also pairs holistic wealth solutions, including tailored lending, with commercial banking services. At June 30, 2025, Commercial Banking had $41.2 billion in loans and leases and $16.2 billion in deposits, as well as a combined $3.1 billion in assets under administration ("AUA") and management ("AUM").

Commercial Banking Operating Results:


	Three months ended June 30,		Percent
(In thousands)	2025	2024	(Unfavorable)
Net interest income	$318,518	$337,588		(5.6	)%
Non-interest income	30,628	34,510		(11.2	)
Operating revenue	349,146	372,098		(6.2	)
Non-interest expense	108,372	104,588		(3.6	)
Pre-tax, pre-provision net revenue	$240,774	$267,510		(10.0	)


	June 30,		Percent
(In millions)	2025	2024	Increase
Loans and leases	$41,198	$40,331		2.1	%
Deposits	16,225	15,464		4.9
AUA / AUM (off balance sheet)	3,070	2,948		4.2

Pre-tax, pre-provision net revenue decreased $26.7 million, to $240.8 million, in the quarter as compared to the prior year. Net interest income decreased $19.0 million, to $318.5 million, primarily driven by lower spreads on loans and leases, partially offset by higher loan balances and lower deposit costs. Non-interest income decreased $3.9 million, to $30.6 million, primarily driven by lower factoring, prepayment, and syndication fees, and lower direct investment gains. Non-interest expense increased $3.8 million, to $108.4 million, primarily driven by higher foreclosed property and loan workout expenses and increased investments in human capital, operational process improvements, and technology.

Healthcare Financial Services

Webster's Healthcare Financial Services segment includes HSA Bank and Ametros. HSA Bank is one the country's largest providers of employee benefits solutions, including being one of the leading bank administrators of health savings accounts, emergency savings accounts, and flexible spending accounts administration services in 50 states. Ametros, the nation's largest professional administrator of medical insurance claim settlements, helps individuals manage their ongoing medical care through their CareGuard service and proprietary technology platform. At June 30, 2025, Healthcare Financial Services had $15.9 billion in total footings comprising $10.2 billion in deposits and $5.8 billion in AUA through linked investment accounts.

Healthcare Financial Services Operating Results:

			Percent
	Three months ended June 30,		Favorable/
(In thousands)	2025	2024	(Unfavorable)
Net interest income	$97,625	$91,664		6.5	%
Non-interest income	28,687	27,465		4.4
Operating revenue	126,312	119,129		6.0
Non-interest expense	55,453	51,267		(8.2	)
Pre-tax net revenue	$70,859	$67,862		4.4


	June 30,		Percent
(Dollars in millions)	2025	2024	Increase
Number of accounts (thousands)	3,472	3,337		4.0	%

Deposits	$10,180	$9,392		8.4
Linked investment accounts (off balance sheet)	5,751	5,522		4.2
Total footings	$15,931	$14,914		6.8

Pre-tax net revenue increased $3.0 million, to $70.9 million, in the quarter as compared to the prior year. Net interest income increased $6.0 million, to $97.6 million, primarily driven by higher deposit balances, partially offset by lower deposit spreads. Non-interest income increased $1.2 million, to $28.7 million, primarily driven by higher interchange fees and medical fees. Non-interest expense increased $4.2 million, to $55.5 million, primarily driven by higher compensation and benefits costs and a one-time lease termination benefit in the second quarter of 2024.

Consumer Banking

Webster's Consumer Banking segment delivers customized financial solutions for individuals and families, private clients, and small business owners across 196 banking centers throughout the Northeast. Consumer Banking offers a full suite of deposit, lending, treasury management, and wealth management solutions delivered by experienced relationship managers and financial advisors. Consumer Banking also provides a fully digital banking experience through its mobile banking apps and BrioDirect. At June 30, 2025, Consumer Banking had $12.5 billion in loans and $27.8 billion in deposits, as well as $7.5 billion in AUA.

Consumer Banking Operating Results:

			Percent
	Three months ended June 30,		Favorable/
(In thousands)	2025	2024	(Unfavorable)
Net interest income	$212,672	$202,679		4.9	%
Non-interest income	24,591	24,392		0.8
Operating revenue	237,263	227,071		4.5
Non-interest expense	123,044	115,905		(6.2	)
Pre-tax, pre-provision net revenue	$114,219	$111,166		2.7

			Percent
	June 30,		Increase/
(In millions)	2025	2024	(Decrease)
Loans	$12,472	$11,239		11.0	%
Deposits	27,790	27,108		2.5
AUA (off balance sheet)	7,546	7,976		(5.4	)

Pre-tax, pre-provision net revenue increased $3.1 million, to $114.2 million, in the quarter as compared to the prior year. Net interest income increased $10.0 million, to $212.7 million, primarily driven by higher average loan and deposit balances coupled with a higher interest rate spread on loans, partially offset by a lower interest rate spread on deposits. Non-interest income increased $0.2 million, to $24.6 million, primarily driven by higher deposit and loan servicing income, partially offset by lower investment services income. Non-interest expense increased $7.1 million, to $123.0 million, primarily driven by increased investments in technology, employee-related expenses, and outside professional services, partially offset by lower operational support expenses and costs related to debit card processing.

***

Webster Financial Corporation ("Webster") (NYSE:WBS) is the holding company for Webster Bank, N.A. ("Webster Bank"). Headquartered in Stamford, CT, Webster is a values-driven organization with approximately $82 billion in total consolidated assets. Webster Bank is a commercial bank that provides a wide range of financial products and services to businesses, individuals, and families across three differentiated lines of business: Commercial Banking, Healthcare Financial Services, and Consumer Banking. While its core footprint spans the Northeast from the New York metropolitan area to Rhode Island and Massachusetts, certain businesses operate in extended geographies. Webster Bank is a member of the FDIC and an equal housing lender. For more information about Webster, including past press releases and the latest annual report, visit the Webster website at www.websterbank.com.

Conference Call

A conference call covering Webster's second quarter 2025 earnings announcement will be held today, Thursday, July 17, 2025, at 9:00 a.m. Eastern Time. To listen to the live call, please dial 888-330-2446, or 1-240-789-2732 for international callers. The passcode is 8607257. The webcast, along with related slides, will be available via Webster's Investor Relations website at investors.websterbank.com. A replay of the conference call will be available for one week via the website listed above, beginning at approximately 12:00 noon (Eastern Time) on July 17, 2025. To access the replay, dial 800-770-2030, or 1-609-800-9909 for international callers. The replay conference ID number is 8607257.

Forward-Looking Statements

This release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "believes," "anticipates," "expects," "intends," "outlook," "target," "continue," "remain," "will," "should," "may," "plans," "estimates," and similar references to future periods. However, these words are not the exclusive means of identifying such statements. Examples of forward-looking statements include but are not limited to: projections of revenues, expenses, income or loss, earnings or loss per share, and other financial items; statements of plans, objectives, and expectations of Webster or its management or Board of Directors; statements of future economic performance; and statements of assumptions underlying such statements. Forward-looking statements are based on Webster's current expectations and assumptions regarding its business, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict, and in many cases, are beyond Webster's control. Webster's actual results may differ materially from those contemplated by the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance. Factors that could cause Webster's actual results to differ from those discussed in any forward-looking statements include, but are not limited to: Webster's ability to successfully execute its business plan and strategic initiatives, and manage any risks or uncertainties; continued regulatory changes or other risk mitigation efforts taken by government agencies in response to the risk to safety and soundness in the banking industry; volatility in Webster's stock price due to investor sentiment and perception of the banking industry; local, regional, national, and international economic conditions or macroeconomic instability (including any economic slowdown or recession, inflation, monetary fluctuation, tariff increases, interest rate changes, credit loss trends, unemployment, changes in housing or securities markets, or other factors) and the impact of the same on Webster or its customers; volatility, disruption, or uncertainty in national and international financial markets, including as a result of geopolitical developments; the impact of unrealized losses in Webster's financial instruments, particularly in Webster's available-for-sale securities portfolio; changes in laws and regulations, or existing laws and regulations that Webster becomes subject to, including those concerning banking, taxes, dividends, securities, insurance, cybersecurity, and healthcare administration, with which Webster and its subsidiaries must comply; adverse conditions in the securities markets that could lead to impairment in the value of Webster's securities portfolio; possible changes in governmental monetary and fiscal policies, or any leadership changes of those determining such policies, including, but not limited to, Federal Reserve policies in connection with continued inflationary pressures; the effects of any restructurings, staff reductions, or other disruptions in the U.S. federal government or in agencies regulating or otherwise impacting Webster's business; the impact of any new regulatory, policy, or enforcement developments resulting from the policies or actions of the current U.S. presidential administration, including changes in tariffs and other protectionist trade policies, any reciprocal and/or retaliatory tariffs by foreign countries, and any uncertainties related thereto, including as the foregoing may affect Webster's customers; the timely development and acceptance of any new products and services, and the perceived value of those products and services by customers; changes in deposit flows, consumer spending, borrowings, and savings habits; Webster's ability to implement new technologies and maintain secure and reliable information and technology systems; the effects of any cybersecurity threats, attacks or disruptions, fraudulent activity, or other data breaches or security events, including those involving Webster's third-party vendors and service providers; issues with the performance of Webster's counterparties and third-party vendors; Webster's ability to increase market share and control expenses; changes in the competitive environment among banks, financial holding companies, and other traditional and non-traditional financial service providers; Webster's ability to maintain adequate sources of funding and liquidity; Webster's ability to attract, develop, motivate, and retain skilled employees; changes in loan demand or real estate values; changes in the mix of loan geographies, sectors, or types and the level of non-performing assets, charge-offs, and delinquencies; changes in Webster's estimates of current expected credit losses based upon periodic review under relevant regulatory and accounting requirements; the effect of changes in accounting policies and practices applicable to Webster, including impacts of recently adopted accounting guidance; legal and regulatory developments, including any due to judicial decisions, the initiation or resolution of legal proceedings or regulatory or other governmental inquiries, the results of regulatory examinations or reviews, disruptions at regulatory agencies, government funding or other issues; Webster's ability to navigate differing environmental, social, governmental, and sustainability concerns among federal and state governmental administrations and judicial decisions, Webster's stakeholders, and other activists that may arise from Webster's business activities; Webster's ability to assess and monitor the effect of evolving uses of artificial intelligence on its business and operations; the occurrence of natural disasters, severe weather events, and public health crises, and any governmental or societal responses thereto; and the other factors that are described in Webster's Annual Report on Form 10-K for the year ended December 31, 2024, and subsequent filings with the U.S. Securities and Exchange Commission. Any forward-looking statement made by Webster in this release speaks only as of the date on which it is made. Factors or events that could cause Webster's actual results to differ may emerge from time to time, and it is not possible for Webster to predict all of them. Webster undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

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.

WEBSTER FINANCIAL CORPORATION Selected Financial Highlights (unaudited)
		Three Months Ended
(In thousands, except ratio and per share data)		June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
Income and performance ratios:
Net income	$	258,848		$	226,917		$	177,766		$	192,985		$	181,633
Net income applicable to common stockholders		251,695			220,367			171,760			186,799			175,494
Earnings per common share - Diluted		1.52			1.30			1.01			1.10			1.03
Return on average assets (annualized)		1.29	%		1.15	%		0.91	%		1.01	%		0.96	%
Return on average tangible common stockholders' equity (annualized)⁽¹⁾		17.96			15.93			12.73			14.29			14.17
Return on average common stockholders' equity (annualized)		11.31			9.94			7.80			8.67			8.40
Non-interest income as a percentage of total revenue		13.22			13.14			7.94			8.92			6.88

Asset quality:
Allowance for credit losses on loans and leases	$	722,046		$	713,321		$	689,566		$	687,798		$	669,355
Non-performing assets		537,050			564,708			461,751			427,274			374,884
Allowance for credit losses on loans and leases / total loans and leases		1.35	%		1.34	%		1.31	%		1.32	%		1.30	%
Net charge-offs / average loans and leases (annualized)		0.27			0.42			0.47			0.27			0.26
Non-performing loans and leases / total loans and leases		1.00			1.06			0.88			0.82			0.72
Non-performing assets / total loans and leases plus other real estate owned and repossessed assets		1.00			1.06			0.88			0.82			0.73
Allowance for credit losses on loans and leases / non-performing loans and leases		135.08			126.39			149.47			161.60			181.48

Other ratios:
Tangible equity⁽¹⁾		7.82	%		7.80	%		7.82	%		7.85	%		7.56	%
Tangible common equity ⁽¹⁾		7.46			7.43			7.45			7.48			7.18
Tier 1 Risk-Based Capital ⁽²⁾		11.84			11.76			12.06			11.77			11.09
Total Risk-Based Capital ⁽²⁾		14.03			13.96			14.24			14.06			13.28
Common equity tier 1 Risk-Based Capital ⁽²⁾		11.33			11.25			11.54			11.25			10.59
Stockholders' equity / total assets		11.40			11.47			11.56			11.58			11.46
Net interest margin ⁽³⁾		3.44			3.48			3.44			3.41			3.39
Efficiency ratio ⁽¹⁾		45.40			45.79			44.80			45.49			46.22

Equity and share related:
Common stockholders' equity	$	9,053,638		$	8,920,175		$	8,849,235		$	8,914,071		$	8,525,289
Book value per common share		54.19			52.91			51.63			52.00			49.74
Tangible book value per common share⁽¹⁾		35.13			33.97			32.95			33.26			30.82
Common stock closing price		54.60			51.55			55.22			46.61			43.59
Dividends declared per common share		0.40			0.40			0.40			0.40			0.40
Common shares outstanding		167,083			168,594			171,391			171,428			171,402
Weighted-average common shares outstanding - Basic		165,884			169,182			169,589			169,569			169,675
Weighted-average common shares - Diluted		166,131			169,544			170,005			169,894			169,937

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

⁽²⁾ Presented as preliminary for June 30, 2025, and actual for the remaining periods.

⁽³⁾As of the first quarter of 2025, Webster changed the methodology used to annualize net interest income in its quarterly and year to date net interest margin calculation. Net interest margin for the prior periods has been recast.

WEBSTER FINANCIAL CORPORATION Consolidated Balance Sheets (unaudited)
(In thousands)		June 30, 2025			March 31, 2025			June 30, 2024
Assets:
Cash and due from banks	$	425,349		$	421,124		$	333,138
Interest-bearing deposits		2,568,570			2,091,152			1,202,515
Investment securities:
Available-for-sale		9,620,354			9,360,097			7,808,874
Held-to-maturity, net		8,192,720			8,297,927			8,637,654
Total investment securities, net		17,813,074			17,658,024			16,446,528
Loans held for sale		278,409			63,849			248,137
Loans and leases:
Commercial		21,293,103			20,880,826			19,492,433
Commercial real estate		21,358,775			21,383,144			22,277,813
Residential mortgages		9,332,413			9,123,000			8,284,297
Consumer		1,687,668			1,669,253			1,518,922
Total loans and leases		53,671,959			53,056,223			51,573,465
Allowance for credit losses on loans and leases		(722,046	)		(713,321	)		(669,355	)
Total loans and leases, net		52,949,913			52,342,902			50,904,110
Federal Home Loan Bank and Federal Reserve Bank stock		370,272			350,702			348,263
Deferred tax assets, net		252,442			249,395			354,482
Premises and equipment, net		422,774			422,425			417,700
Goodwill and other intangible assets, net		3,184,039			3,193,132			3,242,193
Cash surrender value of life insurance policies		1,262,311			1,255,074			1,241,367
Accrued interest receivable and other assets		2,387,117			2,231,971			2,099,673
Total assets	$	81,914,270		$	80,279,750		$	76,838,106

Liabilities and Stockholders' Equity:
Deposits:
Demand	$	10,345,761		$	10,139,131		$	9,996,274
Interest-bearing checking		9,933,392			9,741,569			9,509,202
Health savings accounts		9,064,935			9,180,889			8,474,857
Money market		21,679,493			21,517,733			19,559,083
Savings		7,370,959			7,473,515			6,965,774
Certificates of deposit		6,069,447			6,036,144			5,861,431
Brokered certificates of deposit		1,850,438			1,486,248			1,910,071
Total deposits		66,314,425			65,575,229			62,276,692
Securities sold under agreements to repurchase and federal funds purchased		372,806			83,395			239,524
Federal Home Loan Bank advances		3,339,914			2,910,011			2,809,843
Long-term debt		905,634			907,410			912,743
Accrued expenses and other liabilities		1,643,874			1,599,551			1,790,036
Total liabilities		72,576,653			71,075,596			68,028,838
Preferred stock		283,979			283,979			283,979
Common stockholders' equity		9,053,638			8,920,175			8,525,289
Total stockholders' equity		9,337,617			9,204,154			8,809,268
Total liabilities and stockholders' equity	$	81,914,270		$	80,279,750		$	76,838,106

WEBSTER FINANCIAL CORPORATION Consolidated Statements of Income (unaudited)
		Three Months Ended June 30,						Six Months Ended June 30,
(In thousands, except per share data)		2025			2024			2025			2024
Interest income:
Interest and fees on loans and leases	$	775,203		$	798,097		$	1,530,320		$	1,590,142
Interest on investment securities		197,766			160,827			392,235			308,412
Loans held for sale		7			5,593			22			5,675
Other interest and dividends		27,611			11,769			51,497			23,907
Total interest income		1,000,587			976,286			1,974,074			1,928,136
Interest expense:
Deposits		339,738			361,263			666,121			697,234
Borrowings		39,667			42,726			74,579			90,866
Total interest expense		379,405			403,989			740,700			788,100
Net interest income		621,182			572,297			1,233,374			1,140,036
Provision for credit losses		46,500			59,000			124,000			104,500
Net interest income after provision for credit losses		574,682			513,297			1,109,374			1,035,536
Non-interest income:
Deposit service fees		40,934			41,027			79,829			83,616
Loan and lease related fees		17,657			19,334			35,278			39,101
Wealth and investment services		7,779			8,556			15,568			16,480
Cash surrender value of life insurance policies		9,172			6,359			17,164			12,305
Gain (loss) on sale of investment securities, net		-			(49,915	)		220			(59,741	)
Other income		19,115			16,937			39,204			49,890
Total non-interest income		94,657			42,298			187,263			141,651
Non-interest expense:
Compensation and benefits		199,930			186,850			398,575			375,390
Occupancy		19,337			15,103			39,054			34,542
Technology and equipment		45,932			45,303			93,651			91,139
Intangible assets amortization		9,093			8,716			18,330			17,910
Marketing		5,171			4,107			9,198			8,388
Professional and outside services		18,394			14,066			35,620			27,047
Deposit insurance		15,061			15,065			31,406			39,288
Other expenses		32,796			36,811			63,524			68,240
Total non-interest expense		345,714			326,021			689,358			661,944
Income before income taxes		323,625			229,574			607,279			515,243
Income tax expense		64,777			47,941			121,514			117,287
Net income		258,848			181,633			485,765			397,956
Preferred stock dividends		(4,162	)		(4,162	)		(8,325	)		(8,325	)
Income allocated to participating securities		(2,991	)		(1,977	)		(5,361	)		(4,090	)
Net income applicable to common stockholders	$	251,695		$	175,494		$	472,079		$	385,541

Weighted-average common shares outstanding - Basic		165,884			169,675			167,524			170,061
Weighted-average common shares - Diluted		166,131			169,937			167,853			170,351

Earnings per common share:
Basic	$	1.52		$	1.03		$	2.82		$	2.27
Diluted		1.52			1.03			2.81			2.26

WEBSTER FINANCIAL CORPORATION Five Quarter Consolidated Statements of Income (unaudited)
		Three Months Ended
(In thousands, except per share data)		June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
Interest income:
Interest and fees on loans and leases	$	775,203		$	755,117		$	783,140		$	809,184		$	798,097
Interest on investment securities		197,766			194,469			189,801			176,722			160,827
Loans held for sale		7			15			2,836			5,400			5,593
Other interest and dividends		27,611			23,886			19,310			12,757			11,769
Total interest income		1,000,587			973,487			995,087			1,004,063			976,286
Interest expense:
Deposits		339,738			326,383			358,895			371,075			361,263
Borrowings		39,667			34,912			27,724			43,105			42,726
Total interest expense		379,405			361,295			386,619			414,180			403,989
Net interest income		621,182			612,192			608,468			589,883			572,297
Provision for credit losses		46,500			77,500			63,500			54,000			59,000
Net interest income after provision for credit losses		574,682			534,692			544,968			535,883			513,297
Non-interest income:
Deposit service fees		40,934			38,895			38,665			38,863			41,027
Loan and lease related fees		17,657			17,621			18,770			18,513			19,334
Wealth and investment services		7,779			7,789			8,387			8,367			8,556
Cash surrender value of life insurance policies		9,172			7,992			7,387			8,020			6,359
Gain (loss) on sale of investment securities, net		-			220			(56,886	)		(19,597	)		(49,915	)
Other income		19,115			20,089			36,184			3,575			16,937
Total non-interest income		94,657			92,606			52,507			57,741			42,298
Non-interest expense:
Compensation and benefits		199,930			198,645			192,668			194,736			186,850
Occupancy		19,337			19,717			18,740			18,879			15,103
Technology and equipment		45,932			47,719			47,182			56,696			45,303
Intangible assets amortization		9,093			9,237			9,681			8,491			8,716
Marketing		5,171			4,027			6,139			4,224			4,107
Professional and outside services		18,394			17,226			15,205			16,001			14,066
Deposit insurance		15,061			16,345			16,069			13,555			15,065
Other expenses		32,796			30,728			34,693			36,376			36,811
Total non-interest expense		345,714			343,644			340,377			348,958			326,021
Income before income taxes		323,625			283,654			257,098			244,666			229,574
Income tax expense		64,777			56,737			79,332			51,681			47,941
Net income		258,848			226,917			177,766			192,985			181,633
Preferred stock dividends		(4,162	)		(4,163	)		(4,163	)		(4,162	)		(4,162	)
Income allocated to participating securities		(2,991	)		(2,387	)		(1,843	)		(2,024	)		(1,977	)
Net income applicable to common stockholders	$	251,695		$	220,367		$	171,760		$	186,799		$	175,494

Weighted-average common shares outstanding - Basic		165,884			169,182			169,589			169,569			169,675
Weighted-average common shares - Diluted		166,131			169,544			170,005			169,894			169,937

Earnings per common share:
Basic	$	1.52		$	1.30		$	1.01		$	1.10		$	1.03
Diluted		1.52			1.30			1.01			1.10			1.03

WEBSTER FINANCIAL CORPORATION Consolidated Average Balances, Interest, Average Yields/ Rates, and Net Interest Margin on a Fully Tax-equivalent Basis (unaudited)
		Three Months Ended June 30,
		2025							2024
(Dollars in thousands)		Average Balance		Interest Income/Expense		Average Yield/Rate			Average Balance		Interest Income/Expense		Average Yield/Rate
Assets:
Interest-earning assets:
Loans and leases	$	53,277,897	$	786,808		5.85	%	$	51,434,799	$	808,309		6.23	%
Investment securities ⁽¹⁾		18,225,632		200,031		4.39			17,080,554		164,930		3.86
Federal Home Loan and Federal Reserve Bank stock		346,514		4,243		4.91			336,342		5,166		6.18
Interest-bearing deposits		2,096,578		23,368		4.41			483,947		6,603		5.40
Loans held for sale		58,024		7		0.04			222,080		5,593		10.07
Total interest-earning assets		74,004,645	$	1,014,457		5.44	%		69,557,722	$	990,601		5.65	%
Non-interest-earning assets ⁽¹⁾		6,513,526							6,378,611
Total assets	$	80,518,171						$	75,936,333
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Demand	$	10,109,928	$	-		-	%	$	10,156,691	$	-		-	%
Interest-bearing checking		9,772,340		42,390		1.74			9,424,687		44,578		1.90
Health savings accounts		9,137,704		3,635		0.16			8,528,476		3,206		0.15
Money market		21,645,531		190,853		3.54			18,658,148		193,028		4.16
Savings		7,462,151		31,624		1.70			6,929,874		26,403		1.53
Certificates of deposit		6,061,399		51,873		3.43			5,908,811		65,782		4.48
Brokered certificates of deposits		1,774,379		19,363		4.38			2,108,412		28,266		5.39
Total deposits		65,963,432		339,738		2.07			61,715,099		361,263		2.35
Securities sold under agreements to repurchase		111,005		218		0.78			120,082		36		0.12
Federal funds purchased		-		-		-			78,242		1,078		5.45
Federal Home Loan Bank advances		2,650,111		29,825		4.45			2,429,653		33,727		5.49
Long-term debt ⁽¹⁾		885,773		9,624		4.35			887,528		7,885		3.55
Total borrowings		3,646,889		39,667		4.31			3,515,505		42,726		4.82
Total deposits and interest-bearing liabilities		69,610,321	$	379,405		2.18	%		65,230,604	$	403,989		2.49	%
Non-interest-bearing liabilities ⁽¹⁾		1,613,827							1,971,992
Total liabilities		71,224,148							67,202,596
Preferred stock		283,979							283,979
Common stockholders' equity		9,010,044							8,449,758
Total stockholders' equity		9,294,023							8,733,737
Total liabilities and stockholders' equity	$	80,518,171						$	75,936,333
Tax-equivalent net interest income				635,052							586,612
Less: Tax-equivalent adjustments				(13,870	)						(14,315	)
Net interest income			$	621,182						$	572,297
Net interest margin ⁽²⁾						3.44	%						3.39	%

⁽¹⁾ In order to provide the users of the Company's financial statements with a more transparent view of the actual consolidated average balances that are used in the calculation of net interest margin, the Company has recast, in the above table, certain consolidated average balances for the three months ended June 30, 2024, to reflect a change in presentation being applied retrospectively. Specifically, adjustments were made to exclude average unsettled trades of $130.2 million and average available-for-sale unrealized losses of $828.6 million from investment securities, and to exclude an average basis adjustment of $26.1 million from long-term debt related to a de-designated fair value hedge. Rather, effective as of December 31, 2024, these amounts are being presented in average non-interest-earning assets and average non-interest-bearing liabilities, respectively. There were no changes to the related yields/rates or net interest income that had been previously disclosed.

⁽²⁾As of the first quarter of 2025, Webster changed the methodology used to annualize net interest income in its quarterly and year to date net interest margin calculation. Net interest margin for the prior periods has been recast. There were no changes to the related yields/rates or net interest income that had been previously disclosed.

WEBSTER FINANCIAL CORPORATION Consolidated Average Balances, Interest, Average Yields/ Rates, and Net Interest Margin on a Fully Tax-equivalent Basis (unaudited)
		Six Months Ended June 30,
		2025							2024
(Dollars in thousands)		Average Balance		Interest Income/Expense		Average Yield/Rate			Average Balance		Interest Income/Expense		Average Yield/Rate
Assets:
Interest-earning assets:
Loans and leases	$	52,925,112	$	1,553,196		5.85	%	$	51,186,608	$	1,610,173		6.23	%
Investment securities ⁽¹⁾		18,170,102		396,840		4.37			16,976,384		318,575		3.75
Federal Home Loan and Federal Reserve Bank stock		335,310		8,197		4.93			340,167		9,518		5.63
Interest-bearing deposits		1,958,803		43,300		4.40			528,174		14,389		5.39
Loans held for sale		43,459		22		0.10			117,749		5,675		9.64
Total interest-earning assets		73,432,786	$	2,001,555		5.43	%		69,149,082	$	1,958,330		5.62	%
Non-interest-earning assets ⁽¹⁾		6,463,140							6,485,467
Total assets	$	79,895,926						$	75,634,549
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Demand	$	10,196,846	$	-		-	%	$	10,369,552	$	-		-	%
Interest-bearing checking		9,741,252		83,289		1.72			9,339,970		85,931		1.85
Health savings accounts		9,222,141		7,195		0.16			8,567,058		6,397		0.15
Money market		21,381,682		373,960		3.53			18,380,405		379,780		4.16
Savings		7,284,366		59,767		1.65			6,813,823		47,948		1.42
Certificates of deposit		6,054,336		106,815		3.56			5,844,081		128,281		4.41
Brokered certificates of deposit		1,589,392		35,095		4.45			1,825,343		48,897		5.39
Total deposits		65,470,015		666,121		2.05			61,140,232		697,234		2.29
Securities sold under agreements to repurchase		177,413		1,894		2.12			125,367		207		0.33
Federal funds purchased		-		-		-			109,203		3,015		5.46
Federal Home Loan Bank advances		2,382,692		53,414		4.46			2,559,642		71,094		5.49
Long-term debt ⁽¹⁾		886,003		19,271		4.35			920,520		16,550		3.60
Total borrowings		3,446,108		74,579		4.31			3,714,732		90,866		4.85
Total deposits and interest-bearing liabilities		68,916,123	$	740,700		2.16	%		64,854,964	$	788,100		2.44	%
Non-interest-bearing liabilities ⁽¹⁾		1,710,270							2,032,720
Total liabilities		70,626,393							66,887,684
Preferred stock		283,979							283,979
Common stockholders' equity		8,985,554							8,462,886
Total stockholders' equity		9,269,533							8,746,865
Total liabilities and stockholders' equity	$	79,895,926						$	75,634,549
Tax-equivalent net interest income				1,260,855							1,170,230
Less: Tax-equivalent adjustments				(27,481	)						(30,194	)
Net interest income			$	1,233,374						$	1,140,036
Net interest margin						3.46	%						3.40	%

⁽¹⁾ In order to provide the users of the Company's financial statements with a more transparent view of the actual condensed consolidated average balances that are used in the calculation of net interest margin, the Company has recast, in the above table, certain consolidated average balances for the six months ended June 30, 2024, to reflect a change in presentation being applied retrospectively. Specifically, adjustments were made to exclude average unsettled trades of $119.5 million and average available-for-sale unrealized losses of $783.1 million from investment securities, and to exclude an average basis adjustment of $26.7 million basis adjustment from long-term deb 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.

WEBSTER FINANCIAL CORPORATION Five Quarter Loans and Leases (unaudited)
(In thousands)		June 30, 2025		March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024
Total loans and leases (actual):
Commercial non-mortgage	$	19,943,097	$	19,495,784	$	19,272,958	$	18,657,089	$	18,021,758
Asset-based lending		1,350,006		1,385,042		1,404,007		1,463,903		1,470,675
Commercial real estate		21,358,775		21,383,144		21,391,036		21,691,377		22,277,813
Residential mortgages		9,332,413		9,123,000		8,853,669		8,576,612		8,284,297
Consumer		1,687,668

Webster Reports Second Quarter 2025 EPS of $1.52