Webster Reports Second Quarter 2024 EPS of $1.03; Adjusted EPS of $1.26

Rhea-AI Summary

Webster Financial (NYSE: WBS) reported net income of $177.5 million, or $1.03 per diluted share, for Q2 2024. Adjusted EPS was $1.26, excluding $49.9 million pre-tax of net securities repositioning losses. Key highlights include:

- Revenue of $614.6 million
- Loan balance of $51.6 billion, up 0.9% from prior quarter
- Deposit balance of $62.3 billion, up 2.5% from prior quarter
- Net interest margin of 3.32%, down 3 basis points
- Common equity tier 1 ratio of 10.62%

The company reported steady balance sheet growth despite challenging conditions, with increases in loans, deposits, and interest income driven by diverse asset generation and funding sources.

Positive

• Adjusted EPS of $1.26, excluding securities repositioning losses
• Loan balance increased by 0.9% to $51.6 billion from prior quarter
• Deposit balance grew by 2.5% to $62.3 billion from prior quarter
• Core deposit growth of $0.7 billion from prior quarter
• Strong capital position with common equity tier 1 ratio of 10.62%

Negative

• Net income decreased to $177.5 million from $230.8 million in Q2 2023
• EPS declined to $1.03 from $1.32 in Q2 2023
• Net interest margin decreased by 3 basis points from prior quarter
• Provision for credit losses increased to $59.0 million from $31.5 million a year ago
• Net charge-offs increased to $33.1 million from $20.3 million a year ago

Insights

Financial Analyst

Webster Financial Corporation’s quarterly financial results showcase both strengths and challenges amidst a fluctuating economic landscape. The reported $177.5 million in net income, translating to $1.03 per diluted share, displays a drop from the previous year's $230.8 million, or $1.32 per share. This decline is partly due to a $49.9 million pre-tax loss tied to securities repositioning. However, upon adjusting for this, the adjusted EPS is slightly more favorable at $1.26. Notably, the company experienced 2.5% growth in deposits, although its net interest margin slightly compressed by 3 basis points to 3.32%. Investors should keep an eye on the net interest margin as it affects profitability directly.

Furthermore, the provision for credit losses has risen to $59.0 million from $31.5 million the previous year, indicating increased caution regarding potential defaults. This move is prudent but signals heightened risk perceptions. Overall, Webster's capital position remains robust with a common equity tier 1 ratio of 10.62%, ensuring a buffer against potential economic downturns.

Market Research Analyst

Analyzing Webster Financial's sector-specific performance, the Healthcare Financial Services segment stands out with a significant 21.0% revenue bump, driven by organic growth and the acquisition of Ametros. This indicates Webster's strategic pivot towards sectors with resilient demand. While the Commercial Banking segment saw a slight decline in net interest income, the uplift in non-interest income by 14.9% underscores a diversified revenue strategy, important in uncertain market conditions.

Consumer Banking, however, presents a mixed bag with a notable 11.4% drop in net interest income due to higher deposit costs. Despite this, the segment still managed a modest loan growth, reflecting steady consumer confidence in Webster’s offerings. Retail investors should particularly monitor the performance of the Healthcare segment as it continues to contribute positively to Webster’s overall growth.

STAMFORD, Conn.--(BUSINESS WIRE)-- Webster Financial Corporation (“Webster”) (NYSE: WBS), the holding company for Webster Bank, N.A., today announced net income available to common stockholders of $177.5 million, or $1.03 per diluted share, for the quarter ended June 30, 2024, compared to $230.8 million, or $1.32 per diluted share, for the quarter ended June 30, 2023.

Second quarter 2024 results include $49.9 million pre-tax ($38.7 million after tax), or $0.23¹ per diluted share, of net securities repositioning losses. Excluding this item, adjusted earnings per diluted share would have been $1.26¹ for the quarter ended June 30, 2024.

“Webster continues to generate steady balance sheet growth in a challenging environment,” said John R. Ciulla, chairman and chief executive officer. “Our ability to grow loans, deposits, and interest income is facilitated by the diversity of our asset generation and funding sources.”

Highlights for the second quarter of 2024:

• Revenue of $614.6 million.
• Period end loan and lease balance of $51.6 billion, up $0.5 billion or 0.9 percent from prior quarter; consisting of 81.0 percent commercial loans and leases, 19.0 percent consumer loans, and a loan to deposit ratio of 82.8 percent.
• Period end deposit balance of $62.3 billion, up $1.5 billion or 2.5 percent from prior quarter; core deposit growth of $0.7 billion from prior quarter.
• Provision for credit losses of $59.0 million.
• Return on average assets of 0.96 percent; adjusted 1.16 percent¹.
• Return on average tangible common equity of 14.17 percent¹; adjusted 17.15 percent¹.
• Net interest margin of 3.32 percent, down 3 basis points from prior quarter.
• Common equity tier 1 ratio of 10.62 percent.
• Efficiency ratio of 46.22 percent¹.
• Tangible common equity ratio of 7.18 percent¹.

“Webster’s strong capital position, earnings power, and operating efficiency provide us unique opportunities in managing our business,” said Glenn MacInnes, executive vice president and chief financial officer. “Of note this quarter were a securities portfolio repositioning and the announcement of a private credit joint venture.”

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

Commercial Banking

Webster’s Commercial Banking segment serves businesses that have more than $10 million of revenue through its regional banking, middle market, asset-based lending, equipment finance, commercial real estate, sponsor finance, private banking, and treasury services business units. At June 30, 2024, Commercial Banking had $40.3 billion in loans and leases and $15.5 billion in deposits, as well as a combined $2.9 billion in assets under administration and management.

Commercial Banking Operating Results:

							Percent
	Three months ended June 30,						Favorable/
(In thousands)	2024			2023			(Unfavorable)
Net interest income	$	337,588		$	359,378		(6.1	)%
Non-interest income		34,510			30,030		14.9
Operating revenue		372,098			389,408		(4.4	)
Non-interest expense		104,588			100,074		(4.5	)
Pre-tax, pre-provision net revenue	$	267,510		$	289,334		(7.5	)
							Percent
	At June 30,						Increase/
(In millions)	2024			2023			(Decrease)
Loans and leases	$	40,331		$	40,477		(0.4	)%
Deposits		15,464			16,033		(3.5	)
AUA / AUM (off balance sheet)		2,948			2,757		6.9

Pre-tax, pre-provision net revenue decreased $21.8 million, to $267.5 million, in the quarter as compared to prior year. Net interest income decreased $21.8 million, to $337.6 million, primarily driven by higher loan yields offset by higher deposit rates and lower deposit balances. Non-interest income increased $4.5 million, to $34.5 million, primarily driven by increases in cash management fees, customer interest rate hedging activities, and other income. Non-interest expense increased $4.5 million, to $104.6 million, primarily resulting from continued investments in talent, operational support, and technology.

Healthcare Financial Services

Webster’s Healthcare Financial Services segment is comprised of HSA Bank and the Ametros business. This segment offers consumer-directed healthcare solutions that include health savings accounts, health reimbursement arrangements, administration of medical insurance claim settlements, flexible spending accounts and commuter benefits. Accounts are distributed nationwide directly to employers and individual consumers, as well as through national and regional insurance carriers, benefit consultants, and financial advisors. At June 30, 2024, Healthcare Financial Services had $14.9 billion in total footings comprising $9.4 billion in deposits and $5.5 billion in assets under administration through linked investment accounts.

Healthcare Financial Services Operating Results:

							Percent
	Three months ended June 30,						Favorable/
(In thousands)	2024			2023			(Unfavorable)
Net interest income	$	91,664		$	75,421		21.5	%
Non-interest income		27,465			23,023		19.3
Operating revenue		119,129			98,444		21.0
Non-interest expense		51,267			42,643		(20.2	)
Pre-tax, net revenue	$	67,862		$	55,801		21.6
	At June 30,						Percent
(Dollars in millions)	2024			2023			Increase
Number of accounts (thousands)		3,337			3,177		5.0	%
Deposits	$	9,392		$	8,208		14.4
Linked investment accounts (off balance sheet)		5,522			4,123		33.9
Total footings	$	14,914		$	12,331		20.9

Pre-tax net revenue increased $12.1 million, to $67.9 million, in the quarter as compared to prior year. The increase in pre-tax net revenue was partially attributable to the addition of Ametros in the first quarter of 2024. Net interest income increased $16.3 million, to $91.7 million, primarily due to $11.3 million from Ametros and an increase in net deposit spread coupled with deposit growth at HSA Bank. Non-interest income increased $4.5 million, to $27.5 million, primarily due to $5.4 million from Ametros, offset by a decrease of $0.9 million from HSA Bank. The decrease in HSA Bank was the net result of lower customer account fees partially offset by higher interchange revenue. Non-interest expense increased $8.7 million, to $51.3 million, primarily due to $11.3 million from Ametros. HSA Bank expenses were $2.6 million lower as lower occupancy expense was offset by higher compensation and benefits expense, and service contract expense related to account growth.

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 business banking business units, as well as a distribution network consisting of 196 banking centers and 347 ATMs, a customer care center, and a full range of 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 June 30, 2024, Consumer Banking had $11.2 billion in loans and $27.1 billion in deposits, as well as $8.0 billion in assets under administration.

Consumer Banking Operating Results:

							Percent
	Three months ended June 30,						Favorable/
(In thousands)	2024			2023			(Unfavorable)
Net interest income	$	202,679		$	228,683		(11.4	)%
Non-interest income		24,392			31,102		(21.6	)
Operating revenue		227,071			259,785		(12.6	)
Non-interest expense		115,905			119,388		2.9
Pre-tax, pre-provision net revenue	$	111,166		$	140,397		(20.8	)
	At June 30,						Percent
(In millions)	2024			2023			Increase
Loans	$	11,239		$	11,124		1.0	%
Deposits		27,108			26,191		3.5
AUA (off balance sheet)		7,976			7,848		1.6

Pre-tax, pre-provision net revenue decreased $29.2 million, to $111.2 million, in the quarter as compared to prior year. Net interest income decreased $26.0 million, to $202.7 million, primarily driven by higher rates paid on deposits, partially offset by loan and deposit growth. Non-interest income decreased $6.7 million, to $24.4 million, primarily driven by lower deposit service fees and loan related fees. Non-interest expense decreased $3.5 million, to $115.9 million, primarily driven by reduced occupancy and technology expenses.

Consolidated financial performance:

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

• Net interest income was $572.3 million compared to $583.8 million.
• Net interest margin was 3.32 percent compared to 3.35 percent. The yield on interest-earning assets increased by 33 basis points, and the cost of interest-bearing liabilities increased by 39 basis points.
• Average interest-earning assets totaled $68.9 billion and decreased by $1.2 billion, or 1.8 percent.
• Average loans and leases totaled $51.4 billion and increased by $0.3 billion, or 0.5 percent.
• Average deposits totaled $61.7 billion and increased by $3.1 billion, or 5.4 percent.

Quarterly provision for credit losses:

• The provision for credit losses was $59.0 million in the quarter, contributing to a $27.9 million increase in the allowance for credit losses on loans and leases from the prior quarter. The provision also contributed to a decrease in the reserve on unfunded loan commitments of $2.0 million. The provision for credit losses was $45.5 million in the prior quarter, and $31.5 million a year ago.
• Net charge-offs were $33.1 million, compared to $37.5 million in the prior quarter, and $20.3 million a year ago. The ratio of net charge-offs to average loans and leases was 0.26 percent, compared to 0.29 percent in the prior quarter, and 0.16 percent a year ago.
• The allowance for credit losses on loans and leases represented 1.30 percent of total loans and leases, compared to 1.26 percent at March 31, 2024, and 1.22 percent at June 30, 2023. The allowance represented 181 percent of nonperforming loans and leases at June 30, 2024, compared to 226 percent at March 31, 2024, and 287 percent at June 30, 2023.

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

• Total non-interest income was $42.3 million compared to $89.4 million, a decrease of $47.1 million. Total non-interest income includes a $49.9 million net loss on the sale of investment securities. Excluding this item, total non-interest income increased $2.8 million. The increase is primarily attributable to the addition of Ametros and an increase in other income, partially offset by lower deposit and loan servicing fees.

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

• Total non-interest expense was $326.0 million compared to $344.1 million, an decrease of $18.1 million. Total non-interest expense in the year ago period includes $40.8 million of Sterling merger charges. Excluding those charges, total non-interest expense increased $22.7 million. The increase is primarily attributable to the addition of Ametros, higher compensation, increases in performance-based incentive accruals, and investments in technology.

Quarterly income taxes compared to the second quarter of 2023:

• Income tax expense was $47.9 million compared to $62.6 million, and the effective tax rate was 20.9 percent compared to 21.0 percent.

Investment securities:

• Total investment securities, net were $16.4 billion, compared to $16.3 billion at March 31, 2024, and $14.7 billion at June 30, 2023. The carrying value of the available-for-sale portfolio included $772.2 million of net unrealized losses, compared to $758.5 million at March 31, 2024, and $883.0 million at June 30, 2023. The carrying value of the held-to-maturity portfolio does not reflect $964.5 million of net unrealized losses, compared to $897.2 million at March 31, 2024, and $877.3 million at June 30, 2023.

Loans and leases:

• Total loans and leases were $51.6 billion, compared to $51.1 billion at March 31, 2024, and $51.6 billion at June 30, 2023. Compared to March 31, 2024, commercial real estate loans increased by $408.3 million, residential mortgages increased by $58.1 million, commercial loans and leases increased by $23.4 million, and consumer loans decreased by $15.1 million.
• Compared to a year ago, commercial loans and leases decreased by $1.7 billion, commercial real estate loans increased by $1.6 billion, residential mortgages increased by $144.1 million, and consumer loans decreased by $88.5 million.
• Loan originations for the portfolio were $3.0 billion, compared to $2.5 billion in both the prior quarter, and a year ago. In addition, $0.8 million of residential loans were originated for sale in the quarter, compared to $2.9 million in the prior quarter, and $5.7 million a year ago.

Asset quality:

• Total nonperforming loans and leases were $368.8 million, or 0.72 percent of total loans and leases, compared to $283.6 million, or 0.56 percent of total loans and leases, at March 31, 2024, and $218.9 million, or 0.42 percent of total loans and leases, at June 30, 2023.
• Past due loans and leases were $166.3 million, compared to $125.2 million at March 31, 2024, and $51.4 million at June 30, 2023. The increase from prior quarter is driven primarily by commercial non-mortgage, partially offset by commercial real estate and residential mortgages.

Deposits and borrowings:

• Total deposits were $62.3 billion, compared to $60.7 billion at March 31, 2024, and $58.7 billion at June 30, 2023. Core deposits to total deposits¹ were 87.5 percent, compared to 88.6 percent at March 31, 2024, and 87.6 percent at June 30, 2023. The loan to deposit ratio was 82.8 percent, compared to 84.1 percent at March 31, 2024, and 87.9 percent at June 30, 2023.
• Total borrowings were $4.0 billion, compared to $4.9 billion at March 31, 2024, and $5.6 billion at June 30, 2023.

Capital:

• The return on average common stockholders’ equity and the return on average tangible common stockholders’ equity¹ were 8.40 percent and 14.17 percent, respectively, compared to 11.38 percent and 18.12 percent, respectively, in the second quarter of 2023.
• The tangible equity¹ and tangible common equity¹ ratios were 7.56 percent and 7.18 percent, respectively, compared to 7.62 percent and 7.23 percent, respectively, at June 30, 2023. The common equity tier 1 ratio was 10.62 percent at June 30, 2024, compared to 10.65 percent at June 30, 2023.
• Book value and tangible book value per common share¹ were $49.74 and $30.82, respectively, compared to $46.15 and $29.69, respectively, at June 30, 2023.

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

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 $77 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 second quarter 2024 earnings announcement will be held today, Tuesday, July 23, 2024 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 July 23, 2024. To access the replay, dial 800-770-2030, or 609-800-9909 for international callers. The replay conference ID number is 8607257.

Forward-Looking Statements

This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “believes,” “anticipates,” “expects,” “intends,” “targeted,” “continue,” “remain,” “will,” “should,” “may,” “plans,” “estimates,” and similar references to future periods. However, these words are not the exclusive means of identifying such statements. Examples of forward-looking statements include, but are not limited to: projections of revenues, expenses, expense savings, income or loss, earnings or loss per share, and other financial items; statements of plans, objectives, and expectations of Webster or its management or Board of Directors; statements of future economic performance; and statements of assumptions underlying such statements. Forward-looking statements are based on Webster’s current expectations and assumptions regarding its business, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. Webster’s actual results may differ materially from those contemplated by the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance. Factors that could cause Webster’s actual results to differ from those discussed in any forward-looking statements include, but are not limited to: Webster’s ability to successfully execute its business plan and strategic initiatives, and manage any risks or uncertainties; continued regulatory changes or other mitigation efforts taken by government agencies in response to volatility in the banking industry, including due to the bank failures in 2023; volatility in Webster’s stock price due to investor sentiment and 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; the impact of unrealized losses in Webster’s available-for-sale securities portfolio; changes in laws and regulations, or existing laws and regulations that Webster becomes subject to, including those concerning banking, taxes, dividends, securities, insurance, and healthcare administration, with which Webster and its subsidiaries must comply; adverse conditions in the securities markets that could lead to impairment in the value of Webster’s securities portfolio; inflation, monetary fluctuations, and changes in interest rates, including the impact of such changes on economic conditions, customer behavior, funding costs, and Webster’s loans and leases and securities portfolios; possible changes in governmental monetary and fiscal policies, including, but not limited to, the Federal Reserve policies in connection with continued inflationary pressures and the impact of the 2024 U.S. presidential election; the timely development and acceptance of new products and services, and the perceived value of those products and services by customers; changes in deposit flows, consumer spending, borrowings, and savings habits; Webster’s ability to implement new technologies and maintain secure and reliable information and technology systems; the effects of any cybersecurity threats, attacks or 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 loan demand or real estate values; changes in the mix of loan geographies, sectors, or types and the level of nonperforming assets, charge-offs, and delinquencies; changes in estimates of future reserve requirements based upon periodic review under relevant regulatory and accounting requirements; insufficient allowance for credit losses; the effect of changes in accounting policies and practices applicable to Webster, including the impacts of recently adopted accounting guidance; legal and regulatory developments, including the resolution of legal proceedings or regulatory or other governmental inquiries, and the results of regulatory examinations or reviews; Webster’s ability to navigate any environmental, social, governmental, and sustainability concerns of different stakeholders and activists that may arise from its business activities; Webster’s ability to assess and monitor the effect of artificial intelligence on its business and operations; unforeseen events, such as pandemics or natural disasters, and any governmental or societal responses thereto; and the other factors that are described in Webster’s Annual Report on Form 10-K for the year ended December 31, 2023, and Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Any forward-looking statement made by Webster in this release speaks only as of the date on which it is made. Factors or events that could cause Webster’s actual results to differ may emerge from time to time, and it is not possible for Webster to predict all of them. Webster undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

Non-GAAP Financial Measures

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

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

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

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

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

WEBSTER FINANCIAL CORPORATION Selected Financial Highlights (unaudited)
		At or for the Three Months Ended
(In thousands, except per share data)		June 30, 2024				March 31, 2024				December 31, 2023				September 30, 2023				June 30, 2023
Income and performance ratios:
Net income	$	181,633			$	216,323			$	185,393			$	226,475			$	234,968
Net income available to common stockholders		177,471				212,160				181,230				222,313				230,806
Earnings per diluted common share		1.03				1.23				1.05				1.28				1.32
Return on average assets (annualized)		0.96	%			1.15	%			1.01	%			1.23	%			1.23	%
Return on average tangible common stockholders' equity (annualized) (1)		14.17				16.30				14.49				17.51				18.12
Return on average common stockholders’ equity (annualized)		8.40				10.01				9.03				11.00				11.38
Non-interest income as a percentage of total revenue		6.88				14.89				10.05				13.34				13.28
Asset quality:
Allowance for credit losses on loans and leases	$	669,355			$	641,442			$	635,737			$	635,438			$	628,911
Nonperforming assets		374,884				289,254				218,600				218,402				222,215
Allowance for credit losses on loans and leases / total loans and leases		1.30	%			1.26	%			1.25	%			1.27	%			1.22	%
Net charge-offs / average loans and leases (annualized)		0.26				0.29				0.27				0.23				0.16
Nonperforming loans and leases / total loans and leases		0.72				0.56				0.41				0.43				0.42
Nonperforming assets / total loans and leases plus other real estate owned and repossessed assets		0.73				0.57				0.43				0.44				0.43
Allowance for credit losses on loans and leases / nonperforming loans and leases		181.48				226.17				303.39				295.48				287.35
Other ratios:
Tangible equity (1)		7.56	%			7.54	%			8.12	%			7.62	%			7.62	%
Tangible common equity (1)		7.18				7.15				7.73				7.22				7.23
Tier 1 risk-based capital (2)		11.13				11.08				11.62				11.64				11.16
Total risk-based capital (2)		13.28				13.21				13.72				13.79				13.25
Common equity tier 1 risk-based capital (2)		10.62				10.57				11.11				11.12				10.65
Stockholders’ equity / total assets		11.46				11.49				11.60				11.21				11.18
Net interest margin		3.32				3.35				3.42				3.49				3.35
Efficiency ratio (1)		46.22				45.25				43.04				41.75				42.20
Equity and share related:
Common equity	$	8,525,289			$	8,463,519			$	8,406,017			$	7,915,222			$	7,995,747
Book value per common share		49.74				49.07				48.87				46.00				46.15
Tangible book value per common share (1)		30.82				30.22				32.39				29.48				29.69
Common stock closing price		43.59				50.77				50.76				40.31				37.75
Dividends declared per common share		0.40				0.40				0.40				0.40				0.40
Common shares issued and outstanding		171,402				172,464				172,022				172,056				173,261
Weighted-average common shares outstanding - Basic		169,675				170,445				170,415				171,210				172,739
Weighted-average common shares outstanding - Diluted		169,937				170,704				170,623				171,350				172,803
(1) See "Non-GAAP to GAAP Reconciliations" section beginning on page 19.
(2) Presented as preliminary for June 30, 2024, and actual for the remaining periods.

WEBSTER FINANCIAL CORPORATION Consolidated Balance Sheets (unaudited)
(In thousands)			June 30, 2024			March 31, 2024			June 30, 2023
Assets:
Cash and due from banks		$	346,868		$	322,041		$	283,623
Interest-bearing deposits			1,188,785			1,223,187			1,077,136
Investment securities:
Available-for-sale			7,808,874			8,601,141			7,759,341
Held-to-maturity, net			8,637,654			7,679,891			6,943,784
Total investment securities, net			16,446,528			16,281,032			14,703,125
Loans held for sale			248,137			239,763			10,963
Loans and leases:
Commercial			19,492,433			19,469,014			21,217,411
Commercial real estate			22,277,813			21,869,502			20,661,071
Residential mortgages			8,284,297			8,226,154			8,140,182
Consumer			1,518,922			1,533,972			1,607,384
Total loans and leases			51,573,465			51,098,642			51,626,048
Allowance for credit losses on loans and leases			(669,355)			(641,442)			(628,911)
Loans and leases, net			50,904,110			50,457,200			50,997,137
Federal Home Loan Bank and Federal Reserve Bank stock			348,263			381,451			407,968
Premises and equipment, net			417,700			423,128			426,310
Goodwill and other intangible assets, net			3,242,193			3,250,909			2,852,117
Cash surrender value of life insurance policies			1,241,367			1,237,828			1,239,077
Deferred tax assets, net			354,482			341,292			377,588
Accrued interest receivable and other assets			2,099,673			2,003,862			1,663,199
Total assets		$	76,838,106		$	76,161,693		$	74,038,243
Liabilities and Stockholders' Equity:
Deposits:
Demand		$	9,996,274		$	10,212,509		$	11,157,390
Health savings accounts			8,474,857			8,603,184			8,206,844
Interest-bearing checking			9,509,202			9,498,036			8,775,975
Money market			19,559,083			18,615,031			16,189,678
Savings			6,965,774			6,881,663			7,131,587
Certificates of deposit			5,861,431			5,928,773			4,743,204
Brokered certificates of deposit			1,910,071			1,008,547			2,542,854
Total deposits			62,276,692			60,747,743			58,747,532
Securities sold under agreements to repurchase and other borrowings			239,524			361,886			243,580
Federal Home Loan Bank advances			2,809,843			3,659,930			4,310,371
Long-term debt			912,743			914,520			1,052,258
Accrued expenses and other liabilities			1,790,036			1,730,116			1,404,776
Total liabilities			68,028,838			67,414,195			65,758,517
Preferred stock			283,979			283,979			283,979
Common stockholders' equity			8,525,289			8,463,519			7,995,747
Total stockholders’ equity			8,809,268			8,747,498			8,279,726
Total liabilities and stockholders' equity		$	76,838,106		$	76,161,693		$	74,038,243

WEBSTER FINANCIAL CORPORATION Consolidated Statements of Income (unaudited)
			Three Months Ended June 30,								Six Months Ended June 30,
(In thousands, except per share data)			2024				2023				2024				2023
Interest income:
Interest and fees on loans and leases		$	798,097			$	771,973			$	1,590,142			$	1,488,329
Interest on investment securities			160,827				109,319				308,412				208,569
Loans held for sale			5,593				421				5,675				437
Other interest and dividends			11,769				51,683				23,907				66,989
Total interest income			976,286				933,396				1,928,136				1,764,324
Interest expense:
Deposits			361,263				251,466				697,234				401,670
Borrowings			42,726				98,101				90,866				183,542
Total interest expense			403,989				349,567				788,100				585,212
Net interest income			572,297				583,829				1,140,036				1,179,112
Provision for credit losses			59,000				31,498				104,500				78,247
Net interest income after provision for loan and lease losses			513,297				552,331				1,035,536				1,100,865
Non-interest income:
Deposit service fees			41,027				45,418				83,616				90,854
Loan and lease related fees			19,334				20,528				39,101				43,533
Wealth and investment services			8,556				7,391				16,480				13,978
Cash surrender value of life insurance policies			6,359				6,293				12,305				13,021
(Loss) on sale of investment securities, net			(49,915)				(48)				(59,741)				(16,795)
Other income			16,937				9,792				49,890				15,549
Total non-interest income			42,298				89,374				141,651				160,140
Non-interest expense:
Compensation and benefits			186,850				173,305				375,390				346,505
Occupancy			15,103				20,254				34,542				40,425
Technology and equipment			45,303				51,815				91,139				96,181
Marketing			4,107				5,160				8,388				8,636
Professional and outside services			14,066				29,385				27,047				61,819
Intangible assets amortization			8,716				9,193				17,910				18,690
Deposit insurance			15,065				13,723				39,288				26,046
Other expenses			36,811				41,254				68,240				78,254
Total non-interest expense			326,021				344,089				661,944				676,556
Income before income taxes			229,574				297,616				515,243				584,449
Income tax expense			47,941				62,648				117,287				128,477
Net income			181,633				234,968				397,956				455,972
Preferred stock dividends			(4,162)				(4,162)				(8,325)				(8,325)
Net income available to common stockholders		$	177,471			$	230,806			$	389,631			$	447,647
Weighted-average common shares outstanding - Diluted			169,937				172,803				170,351				172,839
Earnings per common share:
Basic		$	1.03			$	1.32			$	2.27			$	2.57
Diluted			1.03				1.32				2.26				2.57

WEBSTER FINANCIAL CORPORATION Five Quarter Consolidated Statements of Income (unaudited)
			Three Months Ended
(In thousands, except per share data)			June 30, 2024				March 31, 2024				December 31, 2023				September 30, 2023				June 30, 2023
Interest income:
Interest and fees on loans and leases		$	798,097			$	792,045			$	789,423			$	793,626			$	771,973
Interest on investment securities			160,827				147,585				128,924				113,395				109,319
Loans held for sale			5,593				82				280				17				421
Other interest and dividends			11,769				12,138				14,520				23,751				51,683
Total interest income			976,286				951,850				933,147				930,789				933,396
Interest expense:
Deposits			361,263				335,971				325,793				293,955				251,466
Borrowings			42,726				48,140				36,333				49,698				98,101
Total interest expense			403,989				384,111				362,126				343,653				349,567
Net interest income			572,297				567,739				571,021				587,136				583,829
Provision for credit losses			59,000				45,500				36,000				36,500				31,498
Net interest income after provision for loan and lease losses			513,297				522,239				535,021				550,636				552,331
Non-interest income:
Deposit service fees			41,027				42,589				37,459				41,005				45,418
Loan and lease related fees			19,334				19,767				21,362				19,966				20,528
Wealth and investment services			8,556				7,924				7,767				7,254				7,391
Cash surrender value of life insurance policies			6,359				5,946				6,587				6,620				6,293
(Loss) on sale of investment securities, net			(49,915)				(9,826)				(16,825)				-				(48)
Other income			16,937				32,953				7,465				15,537				9,792
Total non-interest income			42,298				99,353				63,815				90,382				89,374
Non-interest expense:
Compensation and benefits			186,850				188,540				184,914				180,333				173,305
Occupancy			15,103				19,439				18,478				18,617				20,254
Technology and equipment			45,303				45,836				46,486				55,261				51,815
Marketing			4,107				4,281				5,176				4,810				5,160
Professional and outside services			14,066				12,981				18,804				26,874				29,385
Intangible assets amortization			8,716				9,194				8,618				8,899				9,193
Deposit insurance			15,065				24,223				58,725				13,310				13,723
Other expenses			36,811				31,429				36,020				54,474				41,254
Total non-interest expense			326,021				335,923				377,221				362,578				344,089
Income before income taxes			229,574				285,669				221,615				278,440				297,616
Income tax expense			47,941				69,346				36,222				51,965				62,648
Net income			181,633				216,323				185,393				226,475				234,968
Preferred stock dividends			(4,162)				(4,163)				(4,163)				(4,162)				(4,162)
Net income available to common stockholders		$	177,471			$	212,160			$	181,230			$	222,313			$	230,806
Weighted-average common shares outstanding - Diluted			169,937				170,704				170,623				171,350				172,803
Earnings per common share:
Basic		$	1.03			$	1.23			$	1.05			$	1.29			$	1.32
Diluted			1.03				1.23				1.05				1.28				1.32

WEBSTER FINANCIAL CORPORATION Consolidated Average Balances, Interest, Yields and Rates, and Net Interest Margin on a Fully Tax-equivalent Basis (unaudited)
			Three Months Ended June 30,
			2024																2023
(Dollars in thousands)			Average balance				Interest				Yield/rate								Average balance			Interest		Yield/rate
Assets:
Interest-earning assets:
Loans and leases		$	51,434,799			$	808,309				6.23	%						$	51,184,715		$	782,557		6.06	%
Investment securities (1)			16,382,215				164,930				3.86								14,780,257			116,027		2.99
Federal Home Loan and Federal Reserve Bank stock			336,342				5,166				6.18								513,559			6,675		5.21
Interest-bearing deposits			483,947				6,603				5.40								3,528,824			45,008		5.05
Loans held for sale			222,080				5,593				10.07								96,537			421		1.74
Total interest-earning assets			68,859,383			$	990,601				5.65	%							70,103,892		$	950,688		5.32	%
Non-interest-earning assets			7,076,950																6,128,636
Total assets		$	75,936,333															$	76,232,528
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Demand deposits		$	10,156,691			$	-				-	%						$	11,375,059		$	-		-	%
Health savings accounts			8,528,476				3,206				0.15								8,250,766			3,090		0.15
Interest-bearing checking, money market and savings			35,012,709				264,009				3.03								31,768,511			178,707		2.26
Certificates of deposit and brokered deposits			8,017,223				94,048				4.72								7,173,552			69,669		3.90
Total deposits			61,715,099				361,263				2.35								58,567,888			251,466		1.72
Securities sold under agreements to repurchase and other borrowings			198,324				1,114				2.22								215,874			63		0.11
Federal Home Loan Bank advances			2,429,653				33,727				5.49								6,724,139			88,556		5.21
Long-term debt (1)			913,608				7,885				3.55								1,061,526			9,482		3.68
Total borrowings			3,541,585				42,726				4.82								8,001,539			98,101		4.87
Total interest-bearing liabilities			65,256,684			$	403,989				2.49	%							66,569,427		$	349,567		2.10	%
Non-interest-bearing liabilities			1,945,912																1,267,803
Total liabilities			67,202,596																67,837,230
Preferred stock			283,979																283,979
Common stockholders' equity			8,449,758																8,111,319
Total stockholders' equity			8,733,737																8,395,298
Total liabilities and stockholders' equity		$	75,936,333															$	76,232,528
Tax-equivalent net interest income							586,612															601,121
Less: Tax-equivalent adjustments							(14,315)															(17,292)
Net interest income						$	572,297														$	583,829
Net interest margin											3.32	%												3.35	%
(1) For the purposes of average yield/rate and margin computations, unsettled trades on investment securities, unrealized gains (losses) on available-for-sale investment securities, and basis adjustments on long-term debt from de-designated fair value hedges are excluded.
WEBSTER FINANCIAL CORPORATION Consolidated Average Balances, Interest, Yields and Rates, and Net Interest Margin on a Fully Tax-equivalent Basis (unaudited)
			Six Months Ended June 30,
			2024																2023
(Dollars in thousands)			Average balance				Interest				Yield/rate								Average balance			Interest		Yield/rate
Assets:
Interest-earning assets:
Loans and leases		$	51,186,608			$	1,610,173				6.23	%						$	50,642,963		$	1,508,100		5.93	%
Investment securities (1)			16,312,782				318,575				3.75								14,707,157			222,001		2.89
Federal Home Loan and Federal Reserve Bank stock			340,167				9,518				5.63								486,617			11,585		4.80
Interest-bearing deposits			528,174				14,389				5.39								2,221,119			55,404		4.96
Loans held for sale			117,749				5,675				9.64								50,838			437		1.72
Total interest-earning assets			68,485,480			$	1,958,330				5.62	%							68,108,694		$	1,797,527		5.21	%
Non-interest-earning assets			7,149,069																6,176,650
Total assets		$	75,634,549															$	74,285,344
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Demand deposits		$	10,369,552			$	-				-	%						$	11,999,028		$	-		-	%
Health savings accounts			8,567,058				6,397				0.15								8,271,493			6,117		0.15
Interest-bearing checking, money market and savings			34,534,198				513,659				2.99								30,816,229			301,755		1.97
Certificates of deposit and brokered deposits			7,669,424				177,178				4.65								5,607,711			93,798		3.37
Total deposits			61,140,232				697,234				2.29								56,694,461			401,670		1.43
Securities sold under agreements to repurchase and other borrowings			234,570				3,222				2.72								563,517			7,890		2.78
Federal Home Loan Bank advances			2,559,642				71,094				5.49								6,201,884			156,682		5.02
Long-term debt (1)			947,269				16,550				3.60								1,066,859			18,970		3.67
Total borrowings			3,741,481				90,866				4.85								7,832,260			183,542		4.68
Total interest-bearing liabilities			64,881,713			$	788,100				2.44	%							64,526,721		$	585,212		1.82	%
Non-interest-bearing liabilities			2,005,971																1,452,640
Total liabilities			66,887,684																65,979,361
Preferred stock			283,979																283,979
Common stockholders' equity			8,462,886																8,022,004
Total stockholders' equity			8,746,865																8,305,983
Total liabilities and stockholders' equity		$	75,634,549															$	74,285,344
Tax-equivalent net interest income							1,170,230															1,212,315
Less: Tax-equivalent adjustments							(30,194)															(33,203)
Net interest income						$	1,140,036														$	1,179,112
Net interest margin											3.33	%												3.50	%
(1) For the purposes of average yield/rate and margin computations, unsettled trades on investment securities, unrealized gains (losses) on available-for-sale investment securities, and basis adjustments on long-term debt from de-designated fair value hedges are excluded.

WEBSTER FINANCIAL CORPORATION Five Quarter Loans and Leases (unaudited)
(Dollars in thousands)			June 30, 2024				March 31, 2024				December 31, 2023				September 30, 2023				June 30, 2023
Loans and leases (actual):
Commercial non-mortgage		$	18,021,758			$	17,976,128			$	18,214,261			$	18,058,524			$	19,499,160
Asset-based lending			1,470,675				1,492,886				1,557,841				1,632,962				1,718,251
Commercial real estate			22,277,813				21,869,502				21,157,732				20,583,254				20,661,071
Residential mortgages			8,284,297				8,226,154				8,227,923				8,228,451				8,140,182
Consumer			1,518,922				1,533,972				1,568,295				1,584,955				1,607,384
Loans and leases			51,573,465				51,098,642				50,726,052				50,088,146				51,626,048
Allowance for credit losses on loans and leases			(669,355)				(641,442)				(635,737)				(635,438)				(628,911)
Loans and leases, net		$	50,904,110			$	50,457,200			$	50,090,315			$	49,452,708			$	50,997,137
Loans and leases (average):
Commercial non-mortgage		$	17,995,654			$	18,235,402			$	18,181,417			$	18,839,776			$	19,220,435
Asset-based lending			1,473,175				1,523,616				1,588,350				1,663,481				1,756,051
Commercial real estate			22,186,566				21,403,765				20,764,834				20,614,334				20,518,355
Residential mortgages			8,252,397				8,225,151				8,240,390				8,200,938				8,067,349
Consumer			1,527,007				1,550,484				1,577,349				1,593,659				1,622,525
Loans and leases		$	51,434,799			$	50,938,418			$	50,352,340			$	50,912,188			$	51,184,715
WEBSTER FINANCIAL CORPORATION Five Quarter Nonperforming Assets and Past Due Loans and Leases (unaudited)
(Dollars in thousands)			June 30, 2024				March 31, 2024				December 31, 2023				September 30, 2023				June 30, 2023
Nonperforming loans and leases:
Commercial non-mortgage		$	210,906			$	203,626			$	134,617			$	121,067			$	109,279
Asset-based lending			29,791				34,915				35,090				10,350				9,450
Commercial real estate			96,337				14,323				11,314				31,004				47,972
Residential mortgages			11,345				8,407				5,591				27,312				26,751
Consumer			20,457				22,341				22,932				25,320				25,417
Total nonperforming loans and leases		$	368,836			$	283,612			$	209,544			$	215,053			$	218,869
Other real estate owned and repossessed assets:
Commercial non-mortgage		$	5,013			$	5,540			$	8,954			$	2,687			$	2,152
Residential mortgages			-				-				-				662				662
Consumer			1,035				102				102				-				532
Total other real estate owned and repossessed assets		$	6,048			$	5,642			$	9,056			$	3,349			$	3,346
Total nonperforming assets		$	374,884			$	289,254			$	218,600			$	218,402			$	222,215
Past due 30-89 days:
Commercial non-mortgage (1)		$	134,794			$	15,365			$	7,071			$	38,875			$	32,074
Commercial real estate			10,284				72,999				9,002				3,491				1,970
Residential mortgages			13,008				17,580				21,047				16,208				10,583
Consumer			8,185				6,824				9,417				12,016				6,718
Total past due 30-89 days		$	166,271			$	112,768			$	46,537			$	70,590			$	51,345
Past due 90 days or more and accruing			9				12,460				52				138				29
Total past due loans and leases		$	166,280			$	125,228			$	46,589			$	70,728			$	51,374
(1) In July 2024, $117.9 million of the commercial non-mortgage loans and leases past due 30-89 days were paid current.

WEBSTER FINANCIAL CORPORATION Five Quarter Changes in the Allowance for Credit Losses on Loans and Leases (unaudited)
			Three Months Ended
(Dollars in thousands)			June 30, 2024				March 31, 2024				December 31, 2023				September 30, 2023				June 30, 2023
ACL on loans and leases, beginning balance		$	641,442			$	635,737			$	635,438			$	628,911			$	613,914
Provision			61,041				43,194				34,300				35,839				35,249
Charge-offs:
Commercial portfolio			33,356				38,461				28,794				27,360				21,945
Consumer portfolio			1,418				1,330				6,878				3,642				1,085
Total charge-offs			34,774				39,791				35,672				31,002				23,030
Recoveries:
Commercial portfolio			360				553				396				292				1,024
Consumer portfolio			1,286				1,749				1,275				1,398				1,754
Total recoveries			1,646				2,302				1,671				1,690				2,778
Total net charge-offs			33,128				37,489				34,001				29,312				20,252
ACL on loans and leases, ending balance		$	669,355			$	641,442			$	635,737			$	635,438			$	628,911
ACL on unfunded loan commitments, ending balance			22,456				24,495				24,734				23,040				22,366
ACL, ending balance		$	691,811			$	665,937			$	660,471			$	658,478			$	651,277
			Three Months Ended
(In thousands, except per share data)			June 30, 2024				March 31, 2024				December 31, 2023				September 30, 2023				June 30, 2023
Efficiency ratio:
Non-interest expense		$	326,021			$	335,923			$	377,221			$	362,578			$	344,089
Less: Foreclosed property activity			(364)				(330)				(96)				(492)				(432)
Intangible assets amortization			8,716				9,194				8,618				8,899				9,193
Operating lease depreciation			560				663				900				1,146				1,639
FDIC special assessment estimate			-				11,862				47,164				-				-
Merger related expenses (1)			-				3,139				30,679				61,625				40,840
Adjusted non-interest expense		$	317,109			$	311,395			$	289,956			$	291,400			$	292,849
Net interest income		$	572,297			$	567,739			$	571,021			$	587,136			$	583,829
Add: Tax-equivalent adjustment			14,315				15,879				17,830				17,906				17,292
Non-interest income			42,298				99,353				63,815				90,382				89,374
Other income (2)			7,802				7,626				5,099				3,614				5,035
Less: Operating lease depreciation			560				663				900				1,146				1,639
(Loss) on sale of investment securities, net			(49,915)				(9,826)				(16,825)				-				(48)
Net gain on sale of mortgage servicing rights			-				11,655				-				-				-
Adjusted income		$	686,067			$	688,105			$	673,690			$	697,892			$	693,939
Efficiency ratio			46.22	%			45.25	%			43.04	%			41.75	%			42.20	%
ROATCE:
Net income		$	181,633			$	216,323			$	185,393			$	226,475			$	234,968
Less: Preferred stock dividends			4,162				4,163				4,163				4,162				4,162
Add: Intangible assets amortization, tax-effected			6,886				7,263				6,808				7,030				7,262
Adjusted net income		$	184,357			$	219,423			$	188,038			$	229,343			$	238,068
Adjusted net income, annualized basis		$	737,428			$	877,692			$	752,152			$	917,372			$	952,272
Average stockholders' equity		$	8,733,737			$	8,759,992			$	8,312,798			$	8,370,469			$	8,395,298
Less: Average preferred stock			283,979				283,979				283,979				283,979				283,979
Average goodwill and other intangible assets, net			3,246,940				3,090,751				2,838,770				2,847,560				2,856,581
Average tangible common stockholders' equity		$	5,202,818			$	5,385,262			$	5,190,049			$	5,238,930			$	5,254,738
Return on average tangible common stockholders' equity			14.17	%			16.30	%			14.49	%			17.51	%			18.12	%
(1) Merger related expenses include Ametros acquisition expenses for the three months ended March 31, 2024. 2023 periods primarily include charges related to the merger with Sterling.
(2) Other income includes the taxable-equivalent of net income generated from low income housing tax-credit investments.

(In thousands, except per share data)		June 30, 2024				March 31, 2024				December 31, 2023				September 30, 2023				June 30, 2023
Tangible equity:
Stockholders' equity	$	8,809,268			$	8,747,498			$	8,689,996			$	8,199,201			$	8,279,726
Less: Goodwill and other intangible assets, net		3,242,193				3,250,909				2,834,600				2,843,217				2,852,117
Tangible stockholders' equity	$	5,567,075			$	5,496,589			$	5,855,396			$	5,355,984			$	5,427,609
Total assets	$	76,838,106			$	76,161,693			$	74,945,249			$	73,130,851			$	74,038,243
Less: Goodwill and other intangible assets, net		3,242,193				3,250,909				2,834,600				2,843,217				2,852,117
Tangible assets	$	73,595,913			$	72,910,784			$	72,110,649			$	70,287,634			$	71,186,126
Tangible equity		7.56	%			7.54	%			8.12	%			7.62	%			7.62	%
Tangible common equity:
Tangible stockholders' equity	$	5,567,075			$	5,496,589			$	5,855,396			$	5,355,984			$	5,427,609
Less: Preferred stock		283,979				283,979				283,979				283,979				283,979
Tangible common stockholders' equity	$	5,283,096			$	5,212,610			$	5,571,417			$	5,072,005			$	5,143,630
Tangible assets	$	73,595,913			$	72,910,784			$	72,110,649			$	70,287,634			$	71,186,126
Tangible common equity		7.18	%			7.15	%			7.73	%			7.22	%			7.23	%
Tangible book value per common share:
Tangible common stockholders' equity	$	5,283,096			$	5,212,610			$	5,571,417			$	5,072,005			$	5,143,630
Common shares outstanding		171,402				172,464				172,022				172,056				173,261
Tangible book value per common share	$	30.82			$	30.22			$	32.39			$	29.48			$	29.69
Core deposits:
Total deposits	$	62,276,692			$	60,747,743			$	60,784,284			$	60,331,767			$	58,747,532
Less: Certificates of deposit		5,861,431				5,928,773				5,574,048				5,150,139				4,743,204
Brokered certificates of deposit		1,910,071				1,008,547				2,890,411				2,337,380				2,542,854
Core deposits	$	54,505,190			$	53,810,423			$	52,319,825			$	52,844,248			$	51,461,474
		Three Months Ended June 30, 2024
Adjusted ROATCE:
Net income	$	181,633
Less: Preferred stock dividends		4,162
Add: Intangible assets amortization, tax-effected		6,886
Loss on sale of investment securities, net, tax-effected		38,694
Adjusted net income	$	223,051
Adjusted net income, annualized basis	$	892,204
Average stockholders' equity	$	8,733,737
Less: Average preferred stock		283,979
Average goodwill and other intangible assets, net		3,246,940
Average tangible common stockholders' equity	$	5,202,818
Adjusted return on average tangible common stockholders' equity		17.15	%
Adjusted ROAA:
Net income	$	181,633
Add: Loss on sale of investment securities, net, tax-effected		38,694
Adjusted net income	$	220,327
Adjusted net income, annualized basis	$	881,308
Average assets	$	75,936,333
Adjusted return on average assets		1.16	%
GAAP to adjusted reconciliation:
	Three Months Ended June 30, 2024
(In millions, except per share data)		Pre-Tax Income				Net Income Available to Common Stockholders				Diluted EPS
Reported (GAAP)	$	229.6			$	177.5			$	1.03
Loss on sale of investment securities, net		49.9				38.7				0.23
Adjusted (non-GAAP)	$	279.5			$	216.2			$	1.26

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240722156158/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 was Webster Financial 's (WBS) EPS for Q2 2024?

Webster Financial (WBS) reported earnings per share (EPS) of $1.03 for Q2 2024. The adjusted EPS, excluding net securities repositioning losses, was $1.26.

How did Webster's (WBS) loan and deposit balances change in Q2 2024?

Webster's (WBS) loan balance increased to $51.6 billion, up 0.9% from the prior quarter. The deposit balance grew to $62.3 billion, up 2.5% from the prior quarter.

What was Webster Financial 's (WBS) net interest margin in Q2 2024?

Webster Financial 's (WBS) net interest margin was 3.32% in Q2 2024, down 3 basis points from the prior quarter.

How did Webster's (WBS) provision for credit losses change in Q2 2024 compared to the previous year?

Webster's (WBS) provision for credit losses increased to $59.0 million in Q2 2024, compared to $31.5 million a year ago.