Webster Financial Corporation ("Webster") (NYSE:WBS), the holding company for Webster Bank, N.A., today announced net income applicable to common stockholders of $254.1 million, or $1.54 per diluted share, for the quarter ended September 30, 2025, compared to $186.8 million, or $1.10 per diluted share, for the quarter ended September 30, 2024.

"Webster continues to exhibit strong financial results," said John R. Ciulla, chairman and chief executive officer. "It is appropriate that on Webster's 90th anniversary, the consistency and excellence Webster has delivered since its founding persists."

Highlights for the third quarter of 2025:

Revenue of $732.6 million.
Period end loans and leases balance of $55.1 billion, up $1.4 billion, or 2.6 percent from prior quarter.
Period end deposits balance of $68.2 billion, up $1.9 billion, or 2.8 percent, from prior quarter.
Provision for credit losses of $44.0 million.
Return on average assets of 1.27 percent.
Return on average tangible common equity of 17.64 percent¹.
Net interest margin of 3.40 percent, down 4 basis points from prior quarter.
Common equity tier 1 ratio of 11.40 percent².
Efficiency ratio of 45.79 percent¹.
Tangible common equity ratio of 7.50 percent¹.
Repurchased 2.2 million shares under Webster's share repurchase program.

"Webster's growth, efficiency, and returns are each reflective of the company's favorable strategic positioning," said Neal Holland, senior executive vice president and chief financial officer. "We are proud to deliver record quarterly EPS on the occasion of Webster's 90th anniversary."

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

² Presented as preliminary for September 30, 2025.

Consolidated financial performance:

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

Net interest income was $631.7 million, compared to $589.9 million.
Net interest margin¹ was 3.40 percent, compared to 3.41 percent. The yield on interest-earning assets decreased by 24 basis points, and the cost of deposits and interest-bearing liabilities decreased by 28 basis points.
Average interest-earning assets totaled $75.4 billion, an increase of $5.0 billion, or 7.1 percent.
Average loans and leases totaled $54.4 billion, an increase of $2.6 billion, or 5.1 percent.
Average deposits totaled $67.3 billion, an increase of $4.7 billion, or 7.6 percent.

Quarterly provision for credit losses:

The provision for credit losses was $44.0 million, compared to $46.5 million in the prior quarter, and $54.0 million a year ago.
Net charge-offs were $38.4 million, compared to $36.4 million in the prior quarter, and $35.4 million a year ago. The ratio of net charge-offs to average loans and leases was 0.28 percent, compared to 0.27 percent in both the prior quarter and a year ago.
The allowance for credit losses on loans and leases represented 1.32 percent of total loans and leases, compared to 1.35 percent at June 30, 2025, and 1.32 percent at September 30, 2024.
The allowance for credit losses on loans and leases represented 134 percent of non-performing loans and leases, compared to 135 percent at June 30, 2025, and 162 percent at September 30, 2024.

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

Total non-interest income was $100.9 million, compared to $57.7 million, an increase of $43.2 million. In the third quarter of 2024, total non-interest income included a $19.6 million net loss on sale of investment securities and a $16.0 million loss on the exit of non-core operations, which included the write-off of a related customer intangible. Excluding those items, total non-interest income increased $7.6 million. The increase is primarily driven by increased activity in client hedging activities, an increase in the credit valuation adjustment, and a $4.0 million beneficial legal settlement.

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

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

Total non-interest expense was $356.7 million, compared to $349.0 million, an increase of $7.7 million. In the third quarter of 2024, total non-interest expense included a net $20.6 million related to strategic restructuring costs and other adjustments and a benefit on the FDIC special assessment. Excluding those charges, total non-interest expense increased $28.3 million. The increase is primarily driven by investments in human capital, increased performance-based incentives, business development, and risk management infrastructure.

Quarterly income taxes compared to the third quarter of 2024:

Income tax expense was $70.7 million, compared to $51.7 million, and the effective tax rate was 21.3 percent, compared to 21.1 percent. The higher effective tax rate in the current quarter reflects the effects of a higher level of income in 2025, compared to 2024, partially offset by the recognition of discrete tax benefits, compared to discrete tax expense a year ago.

Investment securities:

Total investment securities, net, were $18.0 billion, compared to $17.8 billion at June 30, 2025, and $17.2 billion at September 30, 2024. The carrying value of the available-for-sale portfolio included $496.8 million of net unrealized losses, compared to $568.3 million at June 30, 2025, and $486.1 million at September 30, 2024. The carrying value of the held-to-maturity portfolio does not reflect $836.7 million of net unrealized losses, compared to $901.6 million at June 30, 2025, and $677.0 million at September 30, 2024.

Loans and leases:

Total loans and leases were $55.1 billion, compared to $53.7 billion at June 30, 2025, and $51.9 billion at September 30, 2024. Compared to June 30, 2025, commercial loans and leases increased by $619.7 million, commercial real estate loans increased by $552.5 million, residential mortgages increased by $176.7 million, and consumer loans increased by $31.2 million. Compared to September 30, 2024, commercial loans and leases increased by $1.8 billion, commercial real estate loans increased by $219.9 million, residential mortgages increased by $932.5 million, and consumer loans increased by $160.8 million.
Loan originations for the portfolio were $4.1 billion, compared to $3.8 billion in the prior quarter, and $2.8 billion a year ago.

Asset quality:

Total non-performing loans and leases were $543.9 million, compared to $534.5 million at June 30, 2025, and $425.6 million at September 30, 2024. The ratio of total non-performing loans and leases to total loans and leases was 0.99 percent, compared to 1.00 percent at June 30, 2025, and 0.82 percent at September 30, 2024.
Past due loans and leases were $65.6 million, compared to $54.8 million at June 30, 2025, and $108.9 million at September 30, 2024. The increase from prior quarter is primarily driven by commercial real estate and residential mortgages, partially offset by a decrease in commercial non-mortgage.

Deposits and borrowings:

Total deposits were $68.2 billion, compared to $66.3 billion at June 30, 2025, and $64.5 billion at September 30, 2024. The ratio of core deposits to total deposits¹ was 88.9 percent, compared to 88.1 percent at June 30, 2025, and 88.5 percent at September 30, 2024. The loan to deposit ratio was 80.8 percent, compared to 80.9 percent at June 30, 2025, and 80.5 percent at September 30, 2024.

Total borrowings were $3.9 billion, compared to $4.6 billion at June 30, 2025, and $4.1 billion at September 30, 2024.

Capital:

The return on average common stockholders' equity and the return on average tangible common stockholders' equity¹ were 11.23 percent and 17.64 percent, respectively, compared to 11.31 percent and 17.96 percent, respectively, in the prior quarter, and 8.67 percent and 14.29 percent, respectively, a year ago.
The tangible equity¹ and tangible common equity¹ ratios were 7.86 percent and 7.50 percent, respectively, compared to 7.82 percent and 7.46 percent, respectively, at June 30, 2025, and 7.85 percent and 7.48 percent, respectively, at September 30, 2024.
The common equity tier 1² ratio was 11.40 percent, compared to 11.35 percent at June 30, 2025, and 11.25 percent at September 30, 2024.
Book value per common share and tangible book value per common share¹ were $55.69 and $36.42, respectively, compared to $54.19 and $35.13, respectively, at June 30, 2025, and $52.00 and $33.26, respectively, at September 30, 2024.

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

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

Reportable segments:

Commercial Banking

Webster's Commercial Banking segment delivers financial solutions both nationally and regionally to a wide range of companies, investors, government entities, and other public and private institutions. Commercial Banking helps its clients achieve their business and financial goals with expertise in Commercial & Institutional Lending, Commercial Real Estate, Capital Markets, Capital Finance, and Treasury Management. Its Private Banking team also pairs holistic wealth solutions, including tailored lending, with commercial banking services. At September 30, 2025, Commercial Banking had $42.4 billion in loans and leases and $18.3 billion in deposits, as well as a combined $2.8 billion in assets under administration ("AUA") and management ("AUM").

Commercial Banking Operating Results:

			Percent
	Three months ended September 30,		Favorable/
(In thousands)	2025	2024	(Unfavorable)
Net interest income	$328,306	$338,424		(3.0	)%
Non-interest income	33,902	33,288		1.8
Operating revenue	362,208	371,712		(2.6	)
Non-interest expense	108,590	100,892		(7.6	)
Pre-tax, pre-provision net revenue	$253,618	$270,820		(6.4	)

			Percent
	September 30,		Increase/
(In millions)	2025	2024	(Decrease)
Loans and leases	$42,361	$40,372		4.9	%
Deposits	18,261	17,124		6.6
AUA / AUM (off balance sheet)	2,813	2,968		(5.2	)

Pre-tax, pre-provision net revenue decreased $17.2 million, to $253.6 million, in the quarter as compared to the prior year. Net interest income decreased $10.1 million, to $328.3 million, primarily driven by a lower net spread on loans and leases, partially offset by higher average loan and deposit balances. Non-interest income increased $0.6 million, to $33.9 million, primarily driven by higher syndication and prepayment fees and an increase in client hedging activities, partially offset by a non-recurring gain from a multi-family securitization event in the third quarter of 2024. Non-interest expense increased $7.7 million, to $108.6 million, primarily driven by increased investments in human capital, operational process improvements, and technology, and higher foreclosed property and loan workout expenses.

Healthcare Financial Services

Webster's Healthcare Financial Services segment includes HSA Bank and Ametros. HSA Bank is one the country's largest providers of employee benefits solutions, including being one of the leading bank administrators of health savings accounts, emergency savings accounts, and flexible spending accounts administration services in 50 states. Ametros, the nation's largest professional administrator of medical insurance claim settlements, helps individuals manage their ongoing medical care through their CareGuard service and proprietary technology platform. At September 30, 2025, Healthcare Financial Services had $16.6 billion in total footings comprising $10.3 billion in deposits and $6.3 billion in AUA through linked investment accounts.

Healthcare Financial Services Operating Results:

			Percent
	Three months ended September 30,		Favorable/
(In thousands)	2025	2024	(Unfavorable)
Net interest income	$100,041	$93,940		6.5	%
Non-interest income	27,304	26,541		2.9
Operating revenue	127,345	120,481		5.7
Non-interest expense	54,492	54,023		(0.9	)
Pre-tax net revenue	$72,853	$66,458		9.6


	September 30,		Percent
(Dollars in millions)	2025	2024	Increase
Number of accounts (thousands)	3,475	3,341		4.0	%

Deposits	$10,305	$9,940		3.7
Linked investment accounts (off balance sheet)	6,270	5,205		20.5
Total footings	$16,575	$15,146		9.4

Pre-tax net revenue increased $6.4 million, to $72.9 million, in the quarter as compared to the prior year. Net interest income increased $6.1 million, to $100.0 million, primarily driven by higher deposit balances, partially offset by lower deposit spreads. Non-interest income increased $0.8 million, to $27.3 million, primarily driven by higher interchange and medical fees. Non-interest expense increased $0.5 million, to $54.5 million, primarily driven by higher compensation and benefits costs, partially offset by lower service contract expenses.

Consumer Banking

Webster's Consumer Banking segment delivers customized financial solutions for individuals and families, private clients, and small business owners across 196 banking centers throughout the Northeast. Consumer Banking offers a full suite of deposit, lending, treasury management, and wealth management solutions delivered by experienced relationship managers and financial advisors. Consumer Banking also provides a fully digital banking experience through its mobile banking apps and BrioDirect. At September 30, 2025, Consumer Banking had $12.7 billion in loans and $27.5 billion in deposits, as well as $7.7 billion in AUA.

Consumer Banking Operating Results:

			Percent
	Three months ended September 30,		Favorable/
(In thousands)	2025	2024	(Unfavorable)
Net interest income	$214,465	$202,122		6.1	%
Non-interest income	24,909	28,299		(12.0	)
Operating revenue	239,374	230,421		3.9
Non-interest expense	125,397	116,253		(7.9	)
Pre-tax, pre-provision net revenue	$113,977	$114,168		(0.2	)

			Percent
	September 30,		Increase/
(In millions)	2025	2024	(Decrease)
Loans	$12,683	$11,571		9.6	%
Deposits	27,548	27,020		2.0
AUA (off balance sheet)	7,656	7,948		(3.7	)

Pre-tax, pre-provision net revenue decreased $0.2 million, to $114.0 million, in the quarter as compared to the prior year. Net interest income increased $12.3 million, to $214.5 million, primarily driven by higher average loan and deposit balances coupled with a higher interest rate spreads on loans, partially offset by a lower interest rate spread on deposits. Non-interest income decreased $3.4 million, to $24.9 million, primarily driven by a non-recurring gain on an investment portfolio sale in the third quarter of 2024 and lower investment services income. Non-interest expense increased $9.1 million, to $125.4 million, primarily driven by increased investments in technology, employee-related expenses, and loan-related expenses.

***

Webster Financial Corporation ("Webster") (NYSE:WBS) is the holding company for Webster Bank, N.A. ("Webster Bank"). Headquartered in Stamford, CT, Webster is a values-driven organization with more than $83 billion in total consolidated assets. Webster Bank is a commercial bank that provides a wide range of financial products and services to businesses, individuals, and families across three differentiated lines of business: Commercial Banking, Healthcare Financial Services, and Consumer Banking. While its core footprint spans the Northeast from the New York metropolitan area to Rhode Island and Massachusetts, certain businesses operate in extended geographies. Webster Bank is a member of the FDIC and an equal housing lender. For more information about Webster, including past press releases and the latest annual report, visit the Webster website at www.websterbank.com.

Conference Call

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

Forward-Looking Statements

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

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)		September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024
Income and performance ratios:
Net income	$	261,217		$	258,848		$	226,917		$	177,766		$	192,985
Net income applicable to common stockholders		254,051			251,695			220,367			171,760			186,799
Earnings per common share - Diluted		1.54			1.52			1.30			1.01			1.10
Return on average assets (annualized)		1.27	%		1.29	%		1.15	%		0.91	%		1.01	%
Return on average tangible common stockholders' equity (annualized)⁽¹⁾		17.64			17.96			15.93			12.73			14.29
Return on average common stockholders' equity (annualized)		11.23			11.31			9.94			7.80			8.67
Non-interest income as a percentage of total revenue		13.77			13.22			13.14			7.94			8.92

Asset quality:
Allowance for credit losses on loans and leases	$	727,897		$	722,046		$	713,321		$	689,566		$	687,798
Non-performing assets		545,327			537,050			564,708			461,751			427,274
Allowance for credit losses on loans and leases / total loans and leases		1.32	%		1.35	%		1.34	%		1.31	%		1.32	%
Net charge-offs / average loans and leases (annualized)		0.28			0.27			0.42			0.47			0.27
Non-performing loans and leases / total loans and leases		0.99			1.00			1.06			0.88			0.82
Non-performing assets / total loans and leases plus other real estate owned and repossessed assets		0.99			1.00			1.06			0.88			0.82
Allowance for credit losses on loans and leases / non-performing loans and leases		133.82			135.08			126.39			149.47			161.60

Other ratios:
Tangible equity⁽¹⁾		7.86	%		7.82	%		7.80	%		7.82	%		7.85	%
Tangible common equity ⁽¹⁾		7.50			7.46			7.43			7.45			7.48
Tier 1 Risk-Based Capital ⁽²⁾		11.90			11.86			11.76			12.06			11.77
Total Risk-Based Capital ⁽²⁾		14.69			14.05			13.96			14.24			14.06
Common equity tier 1 Risk-Based Capital ⁽²⁾		11.40			11.35			11.25			11.54			11.25
Stockholders' equity / total assets		11.37			11.40			11.47			11.56			11.58
Net interest margin ⁽³⁾		3.40			3.44			3.48			3.44			3.41
Efficiency ratio ⁽¹⁾		45.79			45.40			45.79			44.80			45.49

Equity and share related:
Common stockholders' equity	$	9,178,698		$	9,053,638		$	8,920,175		$	8,849,235		$	8,914,071
Book value per common share		55.69			54.19			52.91			51.63			52.00
Tangible book value per common share⁽¹⁾		36.42			35.13			33.97			32.95			33.26
Common stock closing price		59.44			54.60			51.55			55.22			46.61
Dividends declared per common share		0.40			0.40			0.40			0.40			0.40
Common shares outstanding		164,817			167,083			168,594			171,391			171,428
Weighted-average common shares outstanding - Basic		164,138			165,884			169,182			169,589			169,569
Weighted-average common shares - Diluted		164,456			166,131			169,544			170,005			169,894

⁽¹⁾ See "Non-GAAP to GAAP Reconciliations" section beginning on page 19.
⁽²⁾ Presented as preliminary for September 30, 2025, and actual for the remaining periods.
⁽³⁾As of the first quarter of 2025, Webster changed the methodology used to annualize net interest income in its quarterly net interest margin calculation. Net interest margin for the prior periods has been recast.





WEBSTER FINANCIAL CORPORATION Consolidated Balance Sheets (unaudited)
(In thousands)	September 30, 2025			June 30, 2025			September 30, 2024
Assets:
Cash and due from banks	$	498,801		$	425,349		$	721,261
Interest-bearing deposits		2,563,680			2,568,570			2,476,290
Investment securities:
Available-for-sale		9,932,344			9,620,354			8,594,978
Held-to-maturity, net		8,077,505			8,192,720			8,565,936
Total investment securities, net		18,009,849			17,813,074			17,160,914
Loans held for sale		75,386			278,409			117,615
Loans and leases:
Commercial		21,912,809			21,293,103			20,120,992
Commercial real estate		21,911,298			21,358,775			21,691,377
Residential mortgages		9,509,142			9,332,413			8,576,612
Consumer		1,718,832			1,687,668			1,558,034
Total loans and leases		55,052,081			53,671,959			51,947,015
Allowance for credit losses on loans and leases		(727,897	)		(722,046	)		(687,798	)
Total loans and leases, net		54,324,184			52,949,913			51,259,217
Federal Home Loan Bank and Federal Reserve Bank stock		340,231			370,272			360,795
Deferred tax assets, net		220,972			252,442			273,174
Premises and equipment, net		427,215			422,774			411,070
Goodwill and other intangible assets, net		3,175,747			3,184,039			3,212,050
Cash surrender value of life insurance policies		1,266,491			1,262,311			1,247,624
Accrued interest receivable and other assets		2,290,096			2,387,117			2,213,890
Total assets	$	83,192,652		$	81,914,270		$	79,453,900

Liabilities and Stockholders' Equity:
Deposits:
Demand	$	10,491,975		$	10,345,761		$	10,744,524
Interest-bearing checking		10,723,584			9,933,392			10,016,651
Health savings accounts		9,135,425			9,064,935			8,951,383
Money market		23,188,134			21,679,493			20,460,382
Savings		7,060,713			7,370,959			6,921,459
Certificates of deposit		6,202,906			6,069,447			6,020,031
Brokered certificates of deposit		1,372,907			1,850,438			1,400,000
Total deposits		68,175,644			66,314,425			64,514,430
Securities sold under agreements to repurchase and federal funds purchased		101,717			372,806			100,232
Federal Home Loan Bank advances		2,560,817			3,339,914			3,110,205
Long-term debt		1,249,612			905,634			910,963
Accrued expenses and other liabilities		1,642,185			1,643,874			1,620,020
Total liabilities		73,729,975			72,576,653			70,255,850
Preferred stock		283,979			283,979			283,979
Common stockholders' equity		9,178,698			9,053,638			8,914,071
Total stockholders' equity		9,462,677			9,337,617			9,198,050
Total liabilities and stockholders' equity	$	83,192,652		$	81,914,270		$	79,453,900





WEBSTER FINANCIAL CORPORATION Consolidated Statements of Income (unaudited)
	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands, except per share data)		2025			2024			2025			2024
Interest income:
Interest and fees on loans and leases	$	794,668		$	809,184		$	2,324,988		$	2,399,326
Interest on investment securities		201,321			176,722			593,556			485,134
Loans held for sale		3,988			5,400			4,010			11,075
Other interest and dividends		28,325			12,757			79,822			36,664
Total interest income		1,028,302			1,004,063			3,002,376			2,932,199
Interest expense:
Deposits		355,504			371,075			1,021,625			1,068,309
Borrowings		41,131			43,105			115,710			133,971
Total interest expense		396,635			414,180			1,137,335			1,202,280
Net interest income		631,667			589,883			1,865,041			1,729,919
Provision for credit losses		44,000			54,000			168,000			158,500
Net interest income after provision for credit losses		587,667			535,883			1,697,041			1,571,419
Non-interest income:
Deposit service fees		39,576			38,863			119,405			122,479
Loan and lease related fees		16,404			18,513			51,682			57,614
Wealth and investment services		7,640			8,367			23,208			24,847
Cash surrender value of life insurance policies		7,535			8,020			24,699			20,325
Gain (loss) on sale of investment securities, net		-			(19,597	)		220			(79,338	)
Other income		29,751			3,575			68,955			53,465
Total non-interest income		100,906			57,741			288,169			199,392
Non-interest expense:
Compensation and benefits		209,036			194,736			607,611			570,126
Occupancy		19,003			18,879			58,057			53,421
Technology and equipment		47,520			56,696			141,171			147,835
Intangible assets amortization		8,966			8,491			27,296			26,401
Marketing		4,953			4,224			14,151			12,612
Professional and outside services		17,815			16,001			53,435			43,048
Deposit insurance		15,621			13,555			47,027			52,843
Other expenses		33,755			36,376			97,279			104,616
Total non-interest expense		356,669			348,958			1,046,027			1,010,902
Income before income taxes		331,904			244,666			939,183			759,909
Income tax expense		70,687			51,681			192,201			168,968
Net income		261,217			192,985			746,982			590,941
Preferred stock dividends		(4,162	)		(4,162	)		(12,487	)		(12,487	)
Income allocated to participating securities		(3,004	)		(2,024	)		(8,339	)		(6,136	)
Net income applicable to common stockholders	$	254,051		$	186,799		$	726,156		$	572,318

Weighted-average common shares outstanding - basic		164,138			169,569			166,386			169,898
Weighted-average common shares - diluted		164,456			169,894			166,738			170,226

Earnings per common share:
Basic	$	1.55		$	1.10		$	4.36		$	3.37
Diluted		1.54			1.10			4.36			3.36





WEBSTER FINANCIAL CORPORATION Five Quarter Consolidated Statements of Income (unaudited)
	Three Months Ended
(In thousands, except per share data)	September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024
Interest income:
Interest and fees on loans and leases	$	794,668		$	775,203		$	755,117		$	783,140		$	809,184
Interest on investment securities		201,321			197,766			194,469			189,801			176,722
Loans held for sale		3,988			7			15			2,836			5,400
Other interest and dividends		28,325			27,611			23,886			19,310			12,757
Total interest income		1,028,302			1,000,587			973,487			995,087			1,004,063
Interest expense:
Deposits		355,504			339,738			326,383			358,895			371,075
Borrowings		41,131			39,667			34,912			27,724			43,105
Total interest expense		396,635			379,405			361,295			386,619			414,180
Net interest income		631,667			621,182			612,192			608,468			589,883
Provision for credit losses		44,000			46,500			77,500			63,500			54,000
Net interest income after provision for credit losses		587,667			574,682			534,692			544,968			535,883
Non-interest income:
Deposit service fees		39,576			40,934			38,895			38,665			38,863
Loan and lease related fees		16,404			17,657			17,621			18,770			18,513
Wealth and investment services		7,640			7,779			7,789			8,387			8,367
Cash surrender value of life insurance policies		7,535			9,172			7,992			7,387			8,020
Gain (loss) on sale of investment securities, net		-			-			220			(56,886	)		(19,597	)
Other income		29,751			19,115			20,089			36,184			3,575
Total non-interest income		100,906			94,657			92,606			52,507			57,741
Non-interest expense:
Compensation and benefits		209,036			199,930			198,645			192,668			194,736
Occupancy		19,003			19,337			19,717			18,740			18,879
Technology and equipment		47,520			45,932			47,719			47,182			56,696
Intangible assets amortization		8,966			9,093			9,237			9,681			8,491
Marketing		4,953			5,171			4,027			6,139			4,224
Professional and outside services		17,815			18,394			17,226			15,205			16,001
Deposit insurance		15,621			15,061			16,345			16,069			13,555
Other expenses		33,755			32,796			30,728			34,693			36,376
Total non-interest expense		356,669			345,714			343,644			340,377			348,958
Income before income taxes		331,904			323,625			283,654			257,098			244,666
Income tax expense		70,687			64,777			56,737			79,332			51,681
Net income		261,217			258,848			226,917			177,766			192,985
Preferred stock dividends		(4,162	)		(4,162	)		(4,163	)		(4,163	)		(4,162	)
Income allocated to participating securities		(3,004	)		(2,991	)		(2,387	)		(1,843	)		(2,024	)
Net income applicable to common stockholders	$	254,051		$	251,695		$	220,367		$	171,760		$	186,799

Weighted-average common shares outstanding - basic		164,138			165,884			169,182			169,589			169,569
Weighted-average common shares - diluted		164,456			166,131			169,544			170,005			169,894

Earnings per common share:
Basic	$	1.55		$	1.52		$	1.30		$	1.01		$	1.10
Diluted		1.54			1.52			1.30			1.01			1.10





WEBSTER FINANCIAL CORPORATION Consolidated Average Balances, Interest, Average Yields/ Rates, and Net Interest Margin on a Fully Tax-equivalent Basis (unaudited)
	Three Months Ended September 30,
	2025								2024
(Dollars in thousands)	Average balance		Interest Income/Expense			Average Yield/rate			Average balance		Interest Income/Expense			Average Yield/rate
Assets:
Interest-earning assets:
Loans and leases	$	54,372,960	$	806,695			5.83	%	$	51,752,193	$	820,209		6.22	%
Investment securities ⁽¹⁾		18,371,777		203,552			4.43			17,483,341		179,356		4.10
Federal Home Loan and Federal Reserve Bank stock		345,001		4,729			5.44			340,330		4,383		5.12
Interest-bearing deposits		2,120,664		23,596			4.35			629,180		8,374		5.21
Loans held for sale		192,686		3,988			8.28			216,735		5,400		9.97
Total interest-earning assets		75,403,088	$	1,042,560			5.45	%		70,421,779	$	1,017,722		5.69	%
Non-interest-earning assets ⁽¹⁾		6,591,115								6,383,522
Total assets	$	81,994,203							$	76,805,301
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Demand	$	10,141,954	$	-			-	%	$	10,243,045	$	-		-	%
Interest-bearing checking		10,502,974		47,305			1.79			9,744,885		48,160		1.96
Health savings accounts		9,127,705		3,886			0.17			8,546,941		3,257		0.15
Money market		22,513,065		201,086			3.54			19,945,165		208,980		4.17
Savings		7,233,339		30,813			1.69			6,909,526		29,140		1.69
Certificates of deposit		6,120,864		53,853			3.49			5,895,329		64,368		4.34
Brokered certificates of deposits		1,679,127		18,561			4.39			1,294,764		17,170		5.28
Total deposits		67,319,028		355,504			2.10			62,579,655		371,075		2.36
Securities sold under agreements to repurchase		139,567		631			1.77			125,738		38		0.12
Federal Home Loan Bank advances		2,602,949		29,620			4.45			2,535,497		35,172		5.43
Long-term debt ⁽¹⁾		960,497		10,880			4.53			887,090		7,895		3.56
Total borrowings		3,703,013		41,131			4.37			3,548,325		43,105		4.77
Total deposits and interest-bearing liabilities		71,022,041	$	396,635			2.21	%		66,127,980	$	414,180		2.49	%
Non-interest-bearing liabilities ⁽¹⁾		1,532,014								1,682,187
Total liabilities		72,554,055								67,810,167
Preferred stock		283,979								283,979
Common stockholders' equity		9,156,169								8,711,155
Total stockholders' equity		9,440,148								8,995,134
Total liabilities and stockholders' equity	$	81,994,203							$	76,805,301
Tax-equivalent net interest income				645,925								603,542
Less: Tax-equivalent adjustments				(14,258	)							(13,659	)
Net interest income			$	631,667							$	589,883
Net interest margin ⁽²⁾							3.40	%						3.41	%

⁽¹⁾ In order to provide the users of the Company's financial statements with a more transparent view of the actual consolidated average balances that are used in the calculation of net interest margin, the Company has recast, in the above table, certain consolidated average balances for the three months ended September 30, 2024, to reflect a change in presentation being applied retrospectively. Specifically, adjustments were made to exclude average unsettled trades of $52.3 million and average available-for-sale unrealized losses of $649.2 million from investment securities, and to exclude an average basis adjustment of $24.7 million from long-term debt related to a de-designated fair value hedge. Rather, effective as of December 31, 2024, these amounts are being presented in average non-interest-earning assets and average non-interest-bearing liabilities, respectively. There were no changes to the related yields/rates or net interest income that had been previously disclosed.
⁽²⁾As of the first quarter of 2025, Webster changed the methodology used to annualize net interest income in its quarterly net interest margin calculation. Net interest margin for the prior period 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)
	Nine Months Ended September 30,
	2025								2024
(Dollars in thousands)	Average balance		Interest Income/Expense			Average Yield/rate			Average balance		Interest Income/Expense			Average Yield/rate
Assets:
Interest-earning assets:
Loans and leases	$	53,413,031	$	2,359,891			5.84	%	$	51,376,513	$	2,430,382		6.23	%
Investment securities ⁽¹⁾		18,238,066		600,392			4.39			17,146,601		497,931		3.87
Federal Home Loan and Federal Reserve Bank stock		338,576		12,926			5.10			340,222		13,901		5.46
Interest-bearing deposits		2,013,349		66,896			4.38			563,217		22,763		5.31
Loans held for sale		93,748		4,010			5.70			150,985		11,075		9.78
Total interest-earning assets		74,096,770	$	3,044,115			5.44	%		69,577,538	$	2,976,052		5.65	%
Non-interest-earning assets ⁽¹⁾		6,506,268								6,450,110
Total assets	$	80,603,038							$	76,027,648
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Demand	$	10,178,346	$	-			-	%	$	10,327,076	$	-		-	%
Interest-bearing checking		9,997,950		130,594			1.75			9,475,927		134,091		1.89
Health savings accounts		9,190,317		11,081			0.16			8,560,303		9,654		0.15
Money market		21,762,954		575,046			3.53			18,905,798		588,760		4.16
Savings		7,267,170		90,580			1.67			6,845,957		77,088		1.50
Certificates of deposit		6,076,756		160,668			3.53			5,861,288		192,649		4.39
Brokered certificates of deposit		1,619,633		53,656			4.43			1,647,193		66,067		5.36
Total deposits		66,093,126		1,021,625			2.07			61,623,542		1,068,309		2.32
Securities sold under agreements to repurchase		164,659		2,525			2.02			125,492		245		0.26
Federal funds purchased		-		-			-			72,537		3,015		5.46
Federal Home Loan Bank advances		2,456,918		83,034			4.46			2,551,535		106,266		5.47
Long-term debt ⁽¹⁾		911,107		30,151			4.41			909,294		24,445		3.58
Total borrowings		3,532,684		115,710			4.33			3,658,858		133,971		4.82
Total deposits and interest-bearing liabilities		69,625,810	$	1,137,335			2.18	%		65,282,400	$	1,202,280		2.46	%
Non-interest-bearing liabilities ⁽¹⁾		1,650,198								1,915,023
Total liabilities		71,276,008								67,197,423
Preferred stock		283,979								283,979
Common stockholders' equity		9,043,051								8,546,246
Total stockholders' equity		9,327,030								8,830,225
Total liabilities and stockholders' equity	$	80,603,038							$	76,027,648
Tax-equivalent net interest income				1,906,780								1,773,772
Less: Tax-equivalent adjustments				(41,739	)							(43,853	)
Net interest income			$	1,865,041							$	1,729,919
Net interest margin							3.44	%						3.41	%

⁽¹⁾In order to provide the users of the Company's financial statements with a more transparent view of the actual consolidated average balances that are used in the calculation of net interest margin, the Company has recast, in the above table, certain consolidated average balances for the nine months ended September 30, 2024, to reflect a change in presentation being applied retrospectively. Specifically, adjustments were made to exclude average unsettled trades of $97.0 million and average available-for-sale unrealized losses of $738.2 million from investment securities, and to exclude an average basis adjustment of $26.1 million from long-term debt related to a de-designated fair value hedge. Rather, effective as of December 31, 2024, these amounts are being presented in average non-interest-earning assets and average non-interest-bearing liabilities, respectively. There were no changes to the related yields/rates or net interest income that had been previously disclosed.
⁽²⁾As of the first quarter of 2025, Webster changed the methodology used to annualize net interest income in its quarterly net interest margin calculation. Net interest margin for the prior period has been recast. 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)		September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024
Total loans and leases (actual):
Commercial non-mortgage	$	20,654,331		$	19,943,097		$	19,495,784		$	19,272,958		$	18,657,089
Asset-based lending		1,258,478			1,350,006			1,385,042			1,404,007			1,463,903
Commercial real estate		21,911,298			21,358,775			21,383,144			21,391,036			21,691,377
Residential mortgages		9,509,142			9,332,413			9,123,000			8,853,669			8,576,612
Consumer		1,718,832			1,687,668			1,669,253			1,583,498			1,558,034
Total loans and leases		55,052,081			53,671,959			53,056,223			52,505,168			51,947,015
Allowance for credit losses on loans and leases		(727,897	)		(722,046	)		(713,321	)		(689,566	)		(687,798	)
Total loans and leases, net	$	54,324,184		$	52,949,913		$	52,342,902		$	51,815,602		$	51,259,217

Total loans and leases (average):
Commercial non-mortgage	$	20,451,639		$	19,703,434		$	19,167,596		$	18,919,934		$	18,166,258
Asset-based lending		1,289,208			1,360,288			1,409,177			1,449,743			1,452,794
Commercial real estate		21,508,546			21,302,161			21,338,147			21,572,682			22,215,293
Residential mortgages		9,416,499			9,228,988			8,985,033			8,740,658			8,390,613
Consumer		1,707,068			1,683,026			1,668,453			1,572,414			1,527,235
Total loans and leases	$	54,372,960		$	53,277,897		$	52,568,406		$	52,255,431		$	51,752,193





WEBSTER FINANCIAL CORPORATION Five Quarter Non-performing Assets and Past Due Loans and Leases (unaudited)
(In thousands)	September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2024		September 30, 2024
Non-performing loans and leases:
Commercial non-mortgage	$	223,398	$	231,458	$	279,831	$	268,354	$	215,834
Asset-based lending		58,797		44,405		42,207		20,815		29,791
Commercial real estate		227,118		224,554		207,402		138,642		150,711
Residential mortgages		16,843		15,748		15,715		12,500		9,098
Consumer		17,772		18,357		19,243		21,015		20,183
Total non-performing loans and leases	$	543,928	$	534,522	$	564,398	$	461,326	$	425,617

Other real estate owned and repossessed assets:
Commercial non-mortgage	$	1,399	$	2,528	$	310	$	425	$	504
Residential mortgages		-		-		-		-		221
Consumer		-		-		-		-		932
Total other real estate owned and repossessed assets	$	1,399	$	2,528	$	310	$	425	$	1,657
Total non-performing assets	$	545,327	$	537,050	$	564,708	$	461,751	$	427,274

Past due 30-89 days:
Commercial non-mortgage	$	10,934	$	16,338	$	27,304	$	16,619	$	45,123
Asset-based lending		-		-		-		21,997		-
Commercial real estate		27,812		16,241		33,030		51,556		36,110
Residential mortgages		17,000		12,664		16,406		14,113		18,153
Consumer		8,730		9,516		9,906		9,122		9,471
Total past due 30-89 days	$	64,476	$	54,759	$	86,646	$	113,407	$	108,857
Past due 90 days or more and accruing		1,152		-		507		-		71
Total past due loans and leases	$	65,628	$	54,759	$	87,153	$	113,407	$	108,928




WEBSTER FINANCIAL CORPORATION Five Quarter Changes in the Allowance for Credit Losses on Loans and Leases (unaudited)
	Three Months Ended
(In thousands)	September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2024		September 30, 2024
ACL on loans and leases, beginning balance	$	722,046	$	713,321	$	689,566	$	687,798	$	669,355
Provision		44,205		45,126		78,712		62,639		53,869
Charge-offs:
Commercial portfolio		37,914		39,792		55,566		63,281		36,362
Consumer portfolio		2,003		1,446		1,052		1,265		997
Total charge-offs		39,917		41,238		56,618		64,546		37,359
Recoveries:
Commercial portfolio		765		3,250		942		2,779		377
Consumer portfolio		798		1,587		719		896		1,556
Total recoveries		1,563		4,837		1,661		3,675		1,933
Total net charge-offs		38,354		36,401		54,957		60,871		35,426
ACL on loans and leases, ending balance	$	727,897	$	722,046	$	713,321	$	689,566	$	687,798

ACL on unfunded loan commitments, ending balance	$	23,117	$	22,824	$	21,443	$	22,593	$	22,598

WEBSTER FINANCIAL CORPORATION

Non-GAAP to GAAP Reconciliations

Three Months Ended

(In thousands, except ratio and per share data)

September 30,

2025

June 30,

2025

March 31,

2025

December 31,

2024

September 30,

2024

Efficiency ratio:

Webster Reports Third Quarter 2025 EPS of $1.54