Webster Financial Corporation ("Webster") (NYSE:WBS), the holding company for Webster Bank, N.A. and its HSA Bank division, today announced net income available to common stockholders of $222.3 million, or $1.28 per diluted share, for the quarter ended September 30, 2023, compared to $229.8 million, or $1.31 per diluted share, for the quarter ended September 30, 2022.

Third quarter 2023 results include $61.6 million pre-tax ($45.1 million after tax), or $0.27¹ per diluted share, of charges related to the merger with Sterling Bancorp on January 31, 2022 ("the merger"). Excluding these charges, adjusted earnings per diluted share would have been $1.55¹ for the quarter ended September 30, 2023.

"Our results this quarter illustrate the strength of Webster, both in terms of our earnings power and sound risk and operating profile," said John R. Ciulla, president and chief executive officer. "During the quarter we completed our core systems conversion which marks a significant milestone in the completion of our integration. We continue to be well positioned for the current operating environment."

Highlights for the third quarter of 2023:

Revenue of $677.5 million.
Period end loans and leases balance of $50.1 billion, down $1.5 billion or 3.0 percent from prior quarter; 80.4 percent commercial loans and leases, 19.6 percent consumer loans, and a loan to deposit ratio of 83.0 percent.
Period end deposits balance of $60.3 billion, up $1.6 billion or 2.7 percent from prior quarter.
Provision for credit losses totaled $36.5 million.
Return on average assets of 1.23 percent; adjusted 1.48 percent¹.
Return on average tangible common equity of 17.51 percent¹; adjusted 20.96 percent¹.
Net interest margin of 3.49 percent, up 14 basis points from prior quarter.
Common equity tier 1 ratio of 11.15 percent.
Efficiency ratio of 41.75 percent¹.
Tangible common equity ratio of 7.22 percent¹.

"During the quarter, we further enhanced our liquidity position, while improving both net interest income and net interest margin," said Glenn MacInnes, executive vice president and chief financial officer.

¹ See reconciliations to GAAP financial measures beginning on page 19.

Line of Business performance compared to the third quarter of 2022

Commercial Banking

Webster's Commercial Banking segment serves businesses that have more than $2 million of revenue through its business banking, middle market, asset-based lending, equipment finance, commercial real estate, sponsor finance, private banking, and treasury services business units. At September 30, 2023, Commercial Banking had $40.3 billion in loans and leases and $19.4 billion in deposits, as well as a combined $2.7 billion in assets under administration and management.

Commercial Banking Operating Results:

				Percent
	Three months ended September 30,			Favorable/
(In thousands)		2023	2022	(Unfavorable)
Net interest income		$391,399	$333,554		17.3	%
Non-interest income		30,605	40,497		(24.4	)
Operating revenue		422,004	374,051		12.8
Non-interest expense		110,306	102,415		(7.7	)
Pre-tax, pre-provision net revenue		$311,698	$271,636		14.7

				Percent
		At September 30,		Increase/
(In millions)		2023	2022	(Decrease)
Loans and leases		$40,261	$38,493		4.6	%
Deposits		19,411	20,828		(6.8	)
AUA / AUM (off balance sheet)		2,727	2,121		28.5

Pre-tax, pre-provision net revenue increased $40.1 million, to $311.7 million, in the quarter as compared to prior year. Net interest income increased $57.8 million, to $391.4 million, primarily driven by loan growth and the impact of the higher rate environment. Non-interest income decreased $9.9 million, to $30.6 million, driven by decreases in loan servicing related income, cash management fees, syndication fees, interest rate hedging activities, and prepayment penalties. Non-interest expense increased $7.9 million, to $110.3 million, primarily resulting from continued investments in technology and talent to support balance sheet growth.

HSA Bank

Webster's HSA Bank division offers a comprehensive consumer-directed healthcare solution that includes health savings accounts, health reimbursement arrangements, flexible spending accounts and commuter benefits. Health savings 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 September 30, 2023, HSA Bank had $12.3 billion in total footings comprising $8.2 billion in deposits and $4.1 billion in assets under administration through linked investment accounts.

HSA Bank Operating Results:

				Percent
	Three months ended September 30,			Favorable/
(In thousands)		2023	2022	(Unfavorable)
Net interest income		$77,669	$58,567		32.6	%
Non-interest income		20,799	25,842		(19.5	)
Operating revenue		98,468	84,409		16.7
Non-interest expense		39,870	36,725		(8.6	)
Pre-tax, net revenue		$58,598	$47,684		22.9

				Percent
		At September 30,		Increase/
(Dollars in millions)		2023	2022	(Decrease)
Number of accounts (thousands)		3,186	3,133		1.7	%

Deposits		$8,230	$7,889		4.3
Linked investment accounts (off balance sheet)		4,095	3,233		26.7
Total footings		$12,325	$11,122		10.8

Pre-tax net revenue increased $10.9 million, to $58.6 million, in the quarter as compared to prior year. Net interest income increased $19.1 million, to $77.7 million, primarily due to an increase in net deposit spread and growth in deposits. Non-interest income decreased $5.0 million, to $20.8 million, primarily due to lower customer account service fees. Non-interest expense increased $3.1 million, to $39.9 million, primarily due to higher compensation and benefits expense, service contract expense related to account growth, and the continued investment in our user experience build out.

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 Consumer Lending and Small Business Banking business units, as well as a distribution network consisting of 199 banking centers and 350 ATMs, a customer care center, and a full range of web and mobile-based banking services. Additionally, Webster Investments provides investment services to consumers and small business owners within Webster's targeted markets and retail footprint. At September 30, 2023, Consumer Banking had $9.8 billion in loans and $23.6 billion in deposits, as well as $7.6 billion in assets under administration.

Consumer Banking Operating Results:

				Percent
	Three months ended September 30,			Favorable/
(In thousands)		2023	2022	(Unfavorable)
Net interest income		$195,315	$195,748		(0.2	)%
Non-interest income		26,886	33,842		(20.6	)
Operating revenue		222,201	229,590		(3.2	)
Non-interest expense		105,703	109,588		3.5
Pre-tax, pre-provision net revenue		$116,498	$120,002		(2.9	)


		At September 30,		Percent
(In millions)		2023	2022	Increase
Loans		$9,808	$9,302		5.4	%
Deposits		23,624	23,859		(1.0	)
AUA (off balance sheet)		7,615	7,369		3.3

Pre-tax, pre-provision net revenue decreased $3.5 million, to $116.5 million, in the quarter as compared to prior year. Net interest income decreased $0.4 million, to $195.3 million, primarily driven by a slight decrease in deposits, partially offset by continued loan growth. Non-interest income decreased $7.0 million, to $26.9 million, driven by lower net investment services income, which was attributable to an outsourcing model adopted in the fourth quarter of 2022, and lower deposit and loan servicing related fees, partially offset by other miscellaneous income. Non-interest expense decreased $3.9 million, to $105.7 million, primarily driven by the impact of outsourcing the consumer investment services platform, coupled with lower technology expenses.

Consolidated financial performance:

Quarterly net interest income compared to the third quarter of 2022:

Net interest income was $587.1 million compared to $551.0 million.
Net interest margin was 3.49 percent compared to 3.54 percent. The yield on interest-earning assets increased by 153 basis points, and the cost of interest-bearing liabilities increased by 169 basis points.
Average interest-earning assets totaled $67.1 billion and increased by $5.0 billion, or 8.0 percent.
Average loans and leases totaled $50.9 billion and increased by $4.7 billion, or 10.1 percent.
Average deposits totaled $59.6 billion and increased by $5.6 billion, or 10.4 percent.

Quarterly provision for credit losses:

The provision for credit losses was $36.5 million in the quarter, reflecting a $6.5 million increase in the allowance for credit losses on loans and leases from prior quarter. The provision also reflects an increase in the reserves on unfunded loan commitments of $0.7 million. The provision for credit losses was $31.5 million in the prior quarter, and $36.5 million a year ago.
Net charge-offs were $29.3 million, compared to $20.3 million in the prior quarter, and $28.5 million a year ago. The ratio of net charge-offs to average loans and leases was 0.23 percent, compared to 0.16 percent in the prior quarter, and 0.25 percent a year ago.
The allowance for credit losses on loans and leases represented 1.27 percent of total loans and leases, compared to 1.22 percent at June 30, 2023, and 1.20 percent at September 30, 2022. The allowance represented 295 percent of nonperforming loans and leases at September 30, 2023, compared to 287 percent at June 30, 2023, and 274 percent at September 30, 2022.

Quarterly non-interest income compared to the third quarter of 2022:

Total non-interest income was $90.4 million compared to $113.6 million, a decrease of $23.2 million. The decrease primarily reflects lower prepayment and other loan related servicing fees, lower client deposit fees, the outsourcing of the consumer investment services platform, and lower client hedging activity. Total non-interest income for the third quarter of 2022 includes a net $0.3 million related to a gain on the early termination of repurchase agreements partially offset by a loss on the sale of investment securities.

Quarterly non-interest expense compared to the third quarter of 2022:

Total non-interest expense was $362.6 million compared to $330.1 million, an increase of $32.5 million. Total non-interest expense includes a net $61.6 million of merger charges, compared to a net $26.7 million of merger and strategic initiatives and a $10.5 million donation to the Webster Bank Charitable Foundation a year ago. Excluding those charges, total non-interest expense increased $8.1 million. The increase reflects general inflationary impacts, including employee compensation and benefits expense, investments in technology, including the HSA and interLINK acquisitions, and higher deposit insurance expense, offset by expense benefits from the merger and outsourcing of the consumer investments services platform.

Quarterly income taxes compared to the third quarter of 2022:

Income tax expense was $52.0 million compared to $64.1 million, and the effective tax rate was 18.7 percent compared to 21.5 percent. The lower effective tax rate in the current period reflects the impact of higher merger related charges compared to the 2022 period, as well as the recognition of a $3.3 million net discrete benefit during the quarter attributable to 2022 tax return true-up adjustments.

Investment securities:

Total investment securities, net were $14.5 billion, compared to $14.7 billion at June 30, 2023, and $14.6 billion at September 30, 2022. The carrying value of the available-for-sale portfolio included $1.1 billion of net unrealized losses, compared to $883.0 million at June 30, 2023, and $941.8 million at September 30, 2022. The carrying value of the held-to-maturity portfolio does not reflect $1.2 billion of net unrealized losses, compared to $877.3 million at June 30, 2023, and $855.9 million at September 30, 2022.

Loans and leases:

Total loans and leases were $50.1 billion, compared to $51.6 billion at June 30, 2023, and $47.8 billion at September 30, 2022. Compared to June 30, 2023, commercial loans and leases decreased by $1.5 billion, commercial real estate loans decreased by $77.8 million, residential mortgages increased by $88.3 million, and consumer loans decreased by $22.4 million.
Compared to a year ago, commercial loans and leases increased by $80.5 million, commercial real estate loans increased by $1.7 billion, residential mortgages increased by $610.5 million, and consumer loans decreased by $147.4 million.
Loan originations for the portfolio were $1.5 billion, compared to $2.5 billion in the prior quarter, and $5.1 billion a year ago. In addition, $1.5 million of residential loans were originated for sale in the quarter, compared to $5.7 million in the prior quarter, and $1.5 million a year ago.

Asset quality:

Total nonperforming loans and leases were $215.1 million, or 0.43 percent of total loans and leases, compared to $218.9 million, or 0.42 percent of total loans and leases, at June 30, 2023, and $209.5 million, or 0.44 percent of total loans and leases, at September 30, 2022.
Past due loans and leases were $70.9 million, compared to $51.4 million at June 30, 2023, and $46.4 million at September 30, 2022.

Deposits and borrowings:

Total deposits were $60.3 billion, compared to $58.7 billion at June 30, 2023, and $54.0 billion at September 30, 2022. Core deposits to total deposits¹ were 87.6 percent at both September 30, 2023, and June 30, 2023, compared to 95.2 percent at September 30, 2022. The loan to deposit ratio was 83.0 percent, compared to 87.9 percent at June 30, 2023, and 88.5 percent at September 30, 2022.
Total borrowings were $3.0 billion, compared to $5.6 billion at June 30, 2023, and $5.9 billion at September 30, 2022.

Capital:

The return on average common stockholders' equity and the return on average tangible common stockholders' equity¹ were 11.00 percent and 17.51 percent, respectively, compared to 11.78 percent and 18.62 percent, respectively, in the third quarter of 2022.
The tangible equity¹ and tangible common equity¹ ratios were 7.62 percent and 7.22 percent, respectively, compared to 7.70 percent and 7.27 percent, respectively, at September 30, 2022. The common equity tier 1 ratio was 11.15 percent, compared to 10.80 percent at September 30, 2022.
Book value and tangible book value per common share¹ were $46.00 and $29.48, respectively, compared to $43.32 and $27.69, respectively, at September 30, 2022.

¹ See reconciliations to GAAP financial measures beginning on page 19.

***

Webster Financial Corporation (NYSE:WBS) is the holding company for Webster Bank, N.A. and its HSA Bank Division. 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 its HSA Bank division, one of the country's largest providers of employee benefits solutions. Headquartered in Stamford, CT, Webster is a values-driven organization with $73 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 third quarter 2023 earnings announcement will be held today, Thursday, October 19, 2023 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) on October 19, 2023. To access the replay, dial 800-770-2030, or 647-362-9199 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, 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 integrate the operations of Webster and Sterling Bancorp and realize the anticipated benefits of the merger, including validation of Webster's recently completed core conversion and any issues that may arise therefrom; Webster's ability to successfully execute its business plan and strategic initiatives, and manage any risks or uncertainties; any continuation of the recent turmoil in the banking industry, including the associated impact of any regulatory changes or other mitigation efforts taken by government agencies in response; volatility in Webster's stock price due to investor sentiment, including in light of the recent turmoil in 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; unforeseen events, such as pandemics or natural disasters, and any governmental or societal responses thereto; changes in laws and regulations, or existing laws and regulations that Webster becomes subject to, including those concerning banking, taxes, dividends, securities, insurance, and healthcare, 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, the possibility of a recession, 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 and the ability of the U.S. Congress to increase the U.S. statutory debt limit as needed; the impact of a potential U.S. federal government shutdown; the replacement of, and transition from, the London Interbank Offered Rate (LIBOR) to the Secured Overnight Financing Rate (SOFR) as the primary interest rate benchmark; 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 technology systems; the effects of any cyber threats, attacks or events, or fraudulent activity, including those that involve 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; changes in the level of non-performing assets and charge-offs; changes in estimates of future reserve requirements 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; Webster's inability to remediate the material weaknesses in its internal control related to ineffective information technology general controls (ITGCs); legal and regulatory developments, including the resolution of legal proceedings or regulatory or other governmental inquiries, and the results of regulatory examinations or reviews; Webster's ability to appropriately address any environmental, social, governmental, and sustainability concerns that may arise from its business activities; and the other factors that are described in the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q under the headings "Risk Factors" and "Management Discussion and Analysis of Financial Condition and Results of Operations." Any forward-looking statement made by the Company in this release speaks only as of the date on which it is made. Factors or events that could cause the Company's actual results to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company 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, ROATCE, 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 a complete understanding of factors and trends affecting its business and allows investors to view performance in a manner similar to management.

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.

WEBSTER FINANCIAL CORPORATION Selected Financial Highlights (unaudited)
	At or for the Three Months Ended
(In thousands, except per share data)	September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022			September 30, 2022

Income and performance ratios:
Net income	$	226,475		$	234,968		$	221,004		$	244,751		$	233,968
Net income available to common stockholders		222,313			230,806			216,841			240,588			229,806
Earnings per diluted common share		1.28			1.32			1.24			1.38			1.31
Return on average assets (annualized)		1.23	%		1.23	%		1.22	%		1.40	%		1.38	%
Return on average tangible common stockholders' equity (annualized)⁽¹⁾		17.51			18.12			17.66			19.93			18.62
Return on average common stockholders' equity (annualized)		11.00			11.38			10.94			12.54			11.78
Non-interest income as a percentage of total revenue		13.34			13.28			10.62			14.50			17.10

Asset quality:
Allowance for credit losses on loans and leases	$	635,438		$	628,911		$	613,914		$	594,741		$	574,325
Nonperforming assets		218,402			222,215			186,551			206,136			211,627
Allowance for credit losses on loans and leases / total loans and leases		1.27	%		1.22	%		1.21	%		1.20	%		1.20	%
Net charge-offs / average loans and leases (annualized)		0.23			0.16			0.20			0.17			0.25
Nonperforming loans and leases / total loans and leases		0.43			0.42			0.36			0.41			0.44
Nonperforming assets / total loans and leases plus OREO		0.44			0.43			0.37			0.41			0.44
Allowance for credit losses on loans and leases / nonperforming loans and leases		295.48			287.35			331.81			291.84			274.12

Other ratios:
Tangible equity⁽¹⁾		7.62	%		7.62	%		7.55	%		7.79	%		7.70	%
Tangible common equity ⁽¹⁾		7.22			7.23			7.15			7.38			7.27
Tier 1 risk-based capital ⁽²⁾		11.67			11.16			10.93			11.23			11.35
Total risk-based capital ⁽²⁾		13.82			13.25			12.99			13.25			13.38
Common equity tier 1 risk-based capital ⁽²⁾		11.15			10.65			10.42			10.71			10.80
Stockholders' equity / total assets		11.21			11.18			11.08			11.30			11.33
Net interest margin		3.49			3.35			3.66			3.74			3.54
Efficiency ratio ⁽¹⁾		41.75			42.20			41.64			40.27			41.17

Equity and share related:
Common equity	$	7,915,222		$	7,995,747		$	8,010,315		$	7,772,207		$	7,542,431
Book value per common share		46.00			46.15			45.85			44.67			43.32
Tangible book value per common share⁽¹⁾		29.48			29.69			29.47			29.07			27.69
Common stock closing price		40.31			37.75			39.42			47.34			45.20
Dividends declared per common share		0.40			0.40			0.40			0.40			0.40
Common shares issued and outstanding		172,056			173,261			174,712			174,008			174,116
Weighted-average common shares outstanding - Basic		171,210			172,739			172,766			172,522			173,868
Weighted-average common shares outstanding - Diluted		171,350			172,803			172,883			172,699			173,944

⁽¹⁾ See "Reconciliations to GAAP Financial Measures" section beginning on page 20.
⁽²⁾ Presented as preliminary for September 30, 2023, and actual for the remaining periods.

WEBSTER FINANCIAL CORPORATION Consolidated Balance Sheets (unaudited)
(In thousands)	September 30, 2023			June 30, 2023			September 30, 2022
Assets:
Cash and due from banks	$	406,300		$	283,623		$	286,487
Interest-bearing deposits		1,766,431			1,077,136			326,638
Securities:
Available-for-sale		7,653,391			7,759,341			8,085,044
Held-to-maturity, net		6,875,772			6,943,784			6,505,838
Total securities, net		14,529,163			14,703,125			14,590,882
Loans held for sale		46,267			10,963			898
Loans and Leases:
Commercial		19,691,486			21,217,411			19,610,953
Commercial real estate		20,583,254			20,661,071			18,862,619
Residential mortgages		8,228,451			8,140,182			7,617,955
Consumer		1,584,955			1,607,384			1,732,348
Total loans and leases		50,088,146			51,626,048			47,823,875
Allowance for credit losses on loans and leases		(635,438	)		(628,911	)		(574,325	)
Loans and leases, net		49,452,708			50,997,137			47,249,550
Federal Home Loan Bank and Federal Reserve Bank stock		306,085			407,968			373,044
Premises and equipment, net		431,698			426,310			434,721
Goodwill and other intangible assets, net		2,843,217			2,852,117			2,721,040
Cash surrender value of life insurance policies		1,242,648			1,239,077			1,230,641
Deferred tax asset, net		478,926			377,588			369,737
Accrued interest receivable and other assets		1,627,408			1,663,199			1,468,928
Total Assets	$	73,130,851		$	74,038,243		$	69,052,566

Liabilities and Stockholders' Equity:
Deposits:
Demand	$	11,410,063		$	11,157,390		$	13,849,812
Health savings accounts		8,229,889			8,206,844			7,889,310
Interest-bearing checking		8,826,265			8,775,975			9,203,220
Money market		17,755,198			16,189,678			11,156,579
Savings		6,622,833			7,131,587			9,340,372
Certificates of deposit		5,150,139			4,743,204			2,311,484
Brokered certificates of deposit		2,337,380			2,542,854			258,110
Total deposits		60,331,767			58,747,532			54,008,887
Securities sold under agreements to repurchase and other borrowings		157,491			243,580			1,265,414
Federal Home Loan Bank advances		1,810,218			4,310,371			3,510,717
Long-term debt ⁽¹⁾		1,050,539			1,052,258			1,074,844
Accrued expenses and other liabilities		1,581,635			1,404,776			1,366,294
Total liabilities		64,931,650			65,758,517			61,226,156
Preferred stock		283,979			283,979			283,979
Common stockholders' equity		7,915,222			7,995,747			7,542,431
Total stockholders' equity		8,199,201			8,279,726			7,826,410
Total Liabilities and Stockholders' Equity	$	73,130,851		$	74,038,243		$	69,052,566

⁽¹⁾ The classification of debt as long-term is based on the initial terms of greater than one year as of the date of issuance.

WEBSTER FINANCIAL CORPORATION Consolidated Statements of Income (unaudited)
	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands, except per share data)	2023			2022			2023			2022
Interest income:
Interest and fees on loans and leases	$	793,626		$	525,960		$	2,281,955		$	1,303,774
Interest and dividends on securities		137,146			91,569			412,704			237,297
Loans held for sale		17			40			454			73
Total interest income		930,789			617,569			2,695,113			1,541,144
Interest expense:
Deposits		293,955			37,492			695,625			57,350
Borrowings		49,698			29,074			233,240			51,883
Total interest expense		343,653			66,566			928,865			109,233
Net interest income		587,136			551,003			1,766,248			1,431,911
Provision for credit losses		36,500			36,531			114,747			237,619
Net interest income after provision for loan and lease losses		550,636			514,472			1,651,501			1,194,292
Non-interest income:
Deposit service fees		41,005			50,807			131,859			150,019
Loan and lease related fees		19,966			26,769			63,499			77,355
Wealth and investment services		7,254			11,419			21,232			33,260
Mortgage banking activities		42			86			230			616
Cash surrender value of life insurance policies		6,620			7,718			19,641			22,694
(Loss) on sale of investment securities, net		-			(2,234	)		(16,795	)		(2,234	)
Other income		15,495			19,071			30,856			56,894
Total non-interest income		90,382			113,636			250,522			338,604
Non-interest expense:
Compensation and benefits		180,333			173,983			526,838			545,641
Occupancy		18,617			23,517			59,042			93,725
Technology and equipment		55,261			45,283			151,442			142,182
Marketing		4,810			3,918			13,446			10,868
Professional and outside services		26,874			21,618			88,693			91,041
Intangible assets amortization		8,899			8,511			27,589			23,700
Loan workout expenses		579			580			1,759			1,992
Deposit insurance		13,310			8,026			39,356			19,996
Other expenses		53,895			44,635			130,969			118,938
Total non-interest expense		362,578			330,071			1,039,134			1,048,083
Income before income taxes		278,440			298,037			862,889			484,813
Income tax expense		51,965			64,069			180,442			85,281
Net income		226,475			233,968			682,447			399,532
Preferred stock dividends		(4,162	)		(4,162	)		(12,487	)		(11,756	)
Net income available to common stockholders	$	222,313		$	229,806		$	669,960		$	387,776

Weighted-average common shares outstanding - Diluted		171,350			173,944			172,326			165,813

Earnings per common share:
Basic	$	1.29		$	1.31		$	3.85		$	2.32
Diluted		1.28			1.31			3.85			2.32

WEBSTER FINANCIAL CORPORATION Five Quarter Consolidated Statements of Income (unaudited)
	Three Months Ended
(In thousands, except per share data)	September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022			September 30, 2022
Interest income:
Interest and fees on loans and leases	$	793,626		$	771,973		$	716,356		$	642,784		$	525,960
Interest and dividends on securities		137,146			161,002			114,556			100,804			91,569
Loans held for sale		17			421			16			5			40
Total interest income		930,789			933,396			830,928			743,593			617,569
Interest expense:
Deposits		293,955			251,466			150,204			81,202			37,492
Borrowings		49,698			98,101			85,441			60,016			29,074
Total interest expense		343,653			349,567			235,645			141,218			66,566
Net interest income		587,136			583,829			595,283			602,375			551,003
Provision for credit losses		36,500			31,498			46,749			43,000			36,531
Net interest income after provision for loan and lease losses		550,636			552,331			548,534			559,375			514,472
Non-interest income:
Deposit service fees		41,005			45,418			45,436			48,453			50,807
Loan and lease related fees		19,966			20,528			23,005			25,632			26,769
Wealth and investment services		7,254			7,391			6,587			7,017			11,419
Mortgage banking activities		42			129			59			89			86
Cash surrender value of life insurance policies		6,620			6,293			6,728			6,543			7,718
(Loss) on sale of investment securities, net		-			(48	)		(16,747	)		(4,517	)		(2,234	)
Other income		15,495			9,663			5,698			18,962			19,071
Total non-interest income		90,382			89,374			70,766			102,179			113,636
Non-interest expense:
Compensation and benefits		180,333			173,305			173,200			177,979			173,983
Occupancy		18,617			20,254			20,171			20,174			23,517
Technology and equipment		55,261			51,815			44,366			44,202			45,283
Marketing		4,810			5,160			3,476			5,570			3,918
Professional and outside services		26,874			29,385			32,434			26,489			21,618
Intangible assets amortization		8,899			9,193			9,497			8,240			8,511
Loan workout expenses		579			574			606			606			580
Deposit insurance		13,310			13,723			12,323			6,578			8,026
Other expenses		53,895			40,680			36,394			58,552			44,635
Total non-interest expense		362,578			344,089			332,467			348,390			330,071
Income before income taxes		278,440			297,616			286,833			313,164			298,037
Income tax expense		51,965			62,648			65,829			68,413			64,069
Net income		226,475			234,968			221,004			244,751			233,968
Preferred stock dividends		(4,162	)		(4,162	)		(4,163	)		(4,163	)		(4,162	)
Net income available to common stockholders	$	222,313		$	230,806		$	216,841		$	240,588		$	229,806

Weighted-average common shares outstanding - Diluted		171,350			172,803			172,883			172,699			173,944

Earnings per common share:
Basic	$	1.29		$	1.32		$	1.24		$	1.38		$	1.31
Diluted		1.28			1.32			1.24			1.38			1.31

WEBSTER FINANCIAL CORPORATION Consolidated Average Balances, Interest, Yields and Rates, and Net Interest Margin on a Fully Tax-equivalent Basis (unaudited)
	Three Months Ended September 30,
	2023							2022
(Dollars in thousands)	Average balance		Interest			Yield/rate		Average balance		Interest			Yield/rate
Assets:
Interest-earning assets:
Loans and leases	$	50,912,188	$	804,930		6.20	%	$	46,229,678	$	532,062		4.52	%
Investment securities ⁽¹⁾		14,686,798		119,997		3.09			15,039,510		93,561		2.40
Federal Home Loan and Federal Reserve Bank stock		355,495		7,619		8.50			326,860		1,875		2.28
Interest-bearing deposits		1,187,096		16,132		5.32			585,807		3278		2.19
Loans held for sale		6,756		17		1.03			580		40		n/m
Total interest-earning assets		67,148,333	$	948,695		5.49	%		62,182,435	$	630,816		3.96	%
Non-interest-earning assets		6,459,493							5,823,755
Total Assets	$	73,607,826						$	68,006,190

Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Demand deposits	$	11,335,734	$	-		-	%	$	13,590,667	$	-		-	%
Health savings accounts		8,235,632		3,126		0.15			7,854,425		1,146		0.06
Interest-bearing checking, money market and savings		32,673,899		214,891		2.61			29,798,562		33,808		0.45
Certificates of deposit and brokered deposits		7,342,757		75,938		4.10			2,716,885		2,538		0.37
Total deposits		59,588,022		293,955		1.96			53,960,539		37,492		0.28

Securities sold under agreements to repurchase and other borrowings		170,256		50		0.12			1,369,126		6,242		1.78
Federal Home Loan Bank advances		2,945,136		40,196		5.34			2,402,596		13,814		2.25
Long-term debt ⁽¹⁾		1,051,380		9,452		3.70			1,075,683		9,018		3.47
Total borrowings		4,166,772		49,698		4.72			4,847,405		29,074		2.38
Total interest-bearing liabilities		63,754,794	$	343,653		2.14	%		58,807,944	$	66,566		0.45	%
Non-interest-bearing liabilities		1,482,563							1,108,202
Total liabilities		65,237,357							59,916,146

Preferred stock		283,979							283,979
Common stockholders' equity		8,086,490							7,806,065
Total stockholders' equity		8,370,469							8,090,044
Total Liabilities and Stockholders' Equity	$	73,607,826						$	68,006,190
Tax-equivalent net interest income				605,042							564,250
Less: Tax-equivalent adjustments				(17,906	)						(13,247	)
Net interest income			$	587,136						$	551,003
Net interest margin						3.49	%						3.54	%

⁽¹⁾ For the purposes of average yield/rate and margin computations, unsettled trades on investment securities and unrealized gain (loss) balances on securities available-for-sale and senior fixed-rate notes hedges are excluded.

WEBSTER FINANCIAL CORPORATION Consolidated Average Balances, Interest, Yields and Rates, and Net Interest Margin on a Fully Tax-equivalent Basis (unaudited)
	Nine Months Ended September 30,
	2023								2022
(Dollars in thousands)	Average balance		Interest			Yield/rate			Average balance		Interest			Yield/rate
Assets:
Interest-earning assets:
Loans and leases	$	50,733,691	$	2,313,030			6.02	%	$	42,125,526	$	1,317,941		4.14	%
Investment securities ⁽¹⁾		14,700,296		341,998			2.95			14,548,116		246,788		2.22
Federal Home Loan and Federal Reserve Bank stock		442,429		19,204			5.80			252,559		4,768		2.52
Interest-bearing deposits		1,872,657		71,536			5.04			623,866		4,711		1.00
Loans held for sale		35,982		454			1.68			12,160		73		0.80
Total interest-earning assets		67,785,055	$	2,746,222			5.30	%		57,562,227	$	1,574,281		3.60	%
Non-interest-earning assets		6,271,968								5,448,419
Total Assets	$	74,057,023							$	63,010,646

Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Demand deposits	$	11,775,500	$	-			-	%	$	12,758,489	$	-		-	%
Health savings accounts		8,259,408		9,243			0.15			7,809,082		3,358		0.06
Interest-bearing checking, money market and savings		31,442,258		516,646			2.20			27,887,362		48,992		0.23
Certificates of deposit and brokered deposits		6,192,415		169,736			3.66			2,649,328		5,000		0.25
Total deposits		57,669,581		695,625			1.61			51,104,261		57,350		0.15

Securities sold under agreements to repurchase and other borrowings		430,989		7,940			2.43			1,006,391		9,876		1.29
Federal Home Loan Bank advances		5,104,372		196,878			5.09			1,198,754		17,034		1.87
Long-term debt ⁽¹⁾		1,061,643		28,422			3.68			1,017,120		24,973		3.40
Total borrowings		6,597,004		233,240			4.69			3,222,265		51,883		2.16
Total interest-bearing liabilities		64,266,585	$	928,865			1.93	%		54,326,526	$	109,233		0.27	%
Non-interest-bearing liabilities		1,462,723								1,043,313
Total liabilities		65,729,308								55,369,839

Preferred stock		283,979								268,202
Common stockholders' equity		8,043,736								7,372,605
Total stockholders' equity		8,327,715								7,640,807
Total Liabilities and Stockholders' Equity	$	74,057,023							$	63,010,646
Tax-equivalent net interest income				1,817,357								1,465,048
Less: Tax-equivalent adjustments				(51,109	)							(33,137	)
Net interest income			$	1,766,248							$	1,431,911
Net interest margin

Webster Reports Third Quarter 2023 EPS of $1.28; Adjusted EPS of $1.55