Webster Lowers Prime Lending Rate to 7.75 Percent

Rhea-AI Summary

Webster Financial (NYSE: WBS) has announced a reduction in its prime lending rate from 8.00 percent to 7.75 percent. The new rate became effective on November 8, 2024. This adjustment to the prime lending rate affects Webster Bank's lending operations.

Positive

• Reduced borrowing costs for customers by lowering prime rate by 25 basis points
• Potential to stimulate loan demand and business activity

Negative

• Lower interest rates may reduce net interest income and margins
• Potential pressure on profitability from decreased lending rates

Insights

Financial Analyst

This rate reduction aligns with the Federal Reserve's latest monetary policy shift and signals potential easing in borrowing costs. The 0.25% prime rate cut will directly impact Webster's lending portfolio, particularly affecting variable-rate loans and credit products. While this may slightly compress net interest margins, it could stimulate loan demand and reduce default risks. The move demonstrates Webster's quick response to market conditions and could help maintain competitive positioning in the Northeast banking market. For the broader lending landscape, this adjustment reflects the beginning of a potential rate-easing cycle that could benefit both the bank's loan growth and asset quality metrics.

STAMFORD, Conn.--(BUSINESS WIRE)-- Webster Financial Corporation (NYSE: WBS), the holding company for Webster Bank, N.A., announced today that it has lowered its prime lending rate to 7.75 percent from 8.00 percent, effective November 8, 2024.

About Webster

Webster Financial Corporation (NYSE:WBS) is the holding company for Webster Bank, N.A. Webster is a leading commercial bank in the Northeast that provides a wide range of digital and traditional financial solutions across three differentiated lines of business: Commercial Banking, Consumer Banking and Healthcare Financial Services, one of the country’s largest providers of employee benefits and administration of medical insurance claim settlements solutions. Headquartered in Stamford, CT, Webster is a values-driven organization with $79 billion in assets. Its core footprint spans the northeastern U.S. from New York to Massachusetts, with certain businesses operating in extended geographies. Webster Bank is a member of the FDIC and an equal housing lender. For more information about Webster, including past press releases and the latest annual report, visit the Webster website at www.websterbank.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241107475273/en/

Media Contact:

Alice Ferreira, 203-578-2610

acferreira@websterbank.com



Investor Contact:

Emlen Harmon, 212-309-7646

eharmon@websterbank.com

Source: Webster Financial Corporation

FAQ

What is Webster Financial's (WBS) new prime lending rate?

Webster Financial's new prime lending rate is 7.75 percent, effective November 8, 2024.

How much did Webster Financial (WBS) decrease its prime lending rate?

Webster Financial decreased its prime lending rate by 25 basis points, from 8.00 percent to 7.75 percent.

When did Webster Financial (WBS) implement its new prime rate?

Webster Financial implemented its new prime lending rate of 7.75 percent on November 8, 2024.

What was Webster Financial's (WBS) previous prime lending rate?

Webster Financial's previous prime lending rate was 8.00 percent before the reduction.